“The Aftermath Report”

Using the Market Weakness to Your Advantage

By Bryan Bottarelli
Monday, May 22, 2006 12:26 PM EST
Mon, 22 May 2006 17:26:00 GMT

Dear Bottarelli Research Member,

Over the last two months, I’ve been studying the S&P 400 MidCap Index — scanning all 400 stocks looking for established Up-Trends, established Down-Trends, Newly-Listed Companies (which are Ceridan and Forest Oil), Demographic Plays, Seasonal Plays, and more speculative situations that could lead to more profitable opportunities.

The purpose of this study was to offer you a supplemental investment strategy that works hand in hand with your “lock and load” trading. After all, some members have asked for plays that profit over a longer time frame, so the idea is to get positioned in a series of longer-dated upside plays on some of the market’s top companies — and gradually ride these stocks higher via 6-month call options.

The plays I outlined in this report are not designed to be quick plays. Rather, I intend to hold them longer than our intra-day plays that come out in Bottarelli Research trading alerts. These supplemental plays offer you a chance to get positioned in additional traded on your own time. In short, it’s a perfect way to balance our short-term trading with a longer-dated strategy — offering you the best of both worlds!

As luck would have it, I was just ready to make my final selections for this special report — and that’s when the markets began to lose steam. In fact, the losses quickly started mounting on each other. One day of extreme weakness turned into one week of extreme weakness. Two weeks later, the markets were in the midst of an all-out correction — and nothing was being spared. Not large caps, not mid caps, not small caps. Not even gold, oil, or energy stocks withstood the damage. Everything was in the red. Everything!

That’s why I feel this report could be as timely than ever — because in the world of trading, we’re facing a situation called “Looting the Battlefield”

“Looting the Battlefield” is a practice of using a major market correction to pick up shares of the top companies on Wall Street for dirt cheap. While all these companies are dead and listless, you can get yourself positioned in them for incredible entry prices — literally picking the pockets of these top stocks for explosive 3-6 month gains.

The trick, of course, is waiting until the battle is completely over. Since nobody can perfectly time the markets, the idea is to use the longer-term prevailing trends in our favor to position ourselves in a well-diversified mix of market leaders.

Given the recent market sell-off, I though it would be the ideal time to offer up picks that capitalize on this strategy. So I expanded by search from just the S&P 400 Mid-Cap sector and included a larger portion of large-cap names on the NYSE.

Whether or not this is the absolute bottom of this correction — nobody knows. But one thing is for certain — a down-move of this magnitude will not last forever.

I appropriately named this research “The Aftermath Report” and I expect to have it finalized tomorrow. In fact, I plan to post this new report to the Member’s Section of the website as soon as it’s complete. Of course, as a Charter Member to Bottarelli Research, it comes to you free of charge.

I’ll tell you via email exactly when it has been posted. But for today, I’d like to put the finishing touches on it. Until then…

Lock and load,

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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