Despite the faith a lot of folks have in the wisdom of crowds, the crowd isn’t always right.
Andy Crowder has developed a trading system that can lock in profits no matter what the crowd thinks.
You can get all the details here.
A lot of brokers have sentiment gauges on their websites these days.
They look at all the “buy” and “sell” orders on a stock and gauge whether investors are bullish or bearish.
The idea’s hardly new. The American Association of Individual Investors has been doing something similar for decades.
But it really took off back in 2004, when James Surowiecki’s book The Wisdom of Crowds hit store shelves.
He contended that large groups make better decisions about everything from pop culture to behavioral economics.
Where other people see wisdom, I see a herd of gazelles.
If you’ve ever watched a nature show, you’re bound to have seen video of hundreds of gazelles running across the African savannah.
I’ve always been impressed by how the hive mind seems to work, as the herd moves with seamless precision.
Even when a cheetah pops up out of nowhere and the herd makes a U-turn – with seamless precision.
The problem is, human investors often act more like a slice (yes, that’s really what you call them) of lemmings then a herd of gazelle.
If you want proof, look no further than the 1990s dot-com bomb or the 2000s real estate collapse. Investors were still pouring money in, right up to the bitter end.
Really, how wise was the “crowd?”
I think we’re seeing the same principle in action when it comes to Boeing (NYSE: BA).
Right off the bat, I’ve got to say that Boeing is a great company.
It’s so entrenched in the American aerospace and defense industry, it’s not going bankrupt anytime soon.
It’s basically one of two major manufacturers of extremely complex aircraft that cost millions of dollars and ideally fly for decades.
It’s not a Pets.com or an Enron.
But it’s in crisis.
After two fatal crashes of Boeing’s 737 Max 8 aircraft, the last one in March, the entire global fleet of 737 Max aircraft has been grounded.
The 737 Max was Boeing’s best seller, at least until all deliveries stopped on March 14.
When Boeing released results three months ago it reported record annual sales, mostly thanks to the 737 Max.
When Boeing reports on Wednesday, results are likely to be more of a mixed bag.
After forecasting that earnings rose 18% in the first quarter of 2019, analysts are now estimating they fell by 11%.
Yet Boeing stock is only down by about 10% since the last 737 Max crash on March 10. Year-to-date, the stock is still up 17%.
Let that sink in.
Boeing stock is still up year-to-date even though: All deliveries of its best-selling aircraft have come to a dead stop; analysts are predicting quarterly earnings fell; airlines whose planes have been grounded are already asking for compensation that could into billions of dollars; and, there are reports of shoddy manufacturing practices at a Boeing plant in South Carolina.
Boeing is facing a pretty tough earnings call on Wednesday.
As a crowd of one, I can tell you two things about Boeing stock with certainty: Its stock is going to make a big move on Wednesday, and that move will either be up or down.
That’s helpful, right?
That’s where Andy Crowder’s “V-Crush” strategy comes in.
Andy’s strategy isn’t dependent on whether a stock goes up or down.
It locks in profits as long as a stock moves at all.
In the case of a company like Boeing, which is facing some pretty big challenges, that means a profitable trade is virtually guaranteed.
To find out how it works, and to be the cheetah instead of the lemming, just click here to register for Andy’s FREE training.
Here’s to Profits,
Ben Shepherd