How the “Pulse System” Helped Us Make 65%

[Trading With Larry Benedict]( Managing Editor’s Note: In these pages, Larry often talks about our mean reversion trading strategy. That’s one of the best ways to spot potential trades. When a stock gets overstretched, it often snaps back the other way. That frequently provides the chance for handy profits… That’s why we hope you enjoy this guest essay from our fellow editor Jeff Clark. Today, he shares his method for spotting these kinds of profitable trade setups… How the “Pulse System” Helped Us Make 65% By Jeff Clark, editor, Market Minute Today, I want to introduce you to a beginner-friendly trading strategy… one that helped my readers beat the market four-to-one… I call it the “Pulse system.” So today, I thought I would take you into how it works… Simple Method, Repeatable Results It’s simple, really… the Pulse system looks for stocks that have moved far away from their moving averages and are set up to snap back to them. Here’s an example, using one of my favorite stocks to trade – the VanEck Vectors Gold Miners ETF (GDX): [(Click here to expand image)]( In mid-April 2023, GDX was trading near $36 per share. The stock had rallied from $27 a few weeks earlier. It was now in an extended, overbought condition – and vulnerable to a pullback. The various moving averages (the squiggly lines on the chart) were extended far away from each other. And at $36 per share, GDX was trading historically far above its 50-day moving average (the blue line). At first glance, this looked like a good setup for betting on a decline in GDX. But I didn’t recommend a trade – because something was missing… Recommended Link [Man Paid $1.5 Million by Google Reveals How to Profit from their New AI Project]( [image]( See the document above? It’s a pay stub showing that Google paid tech expert Colin Tedards over $1.5 million dollars in 2022 (through their holding company XXVI Holding Inc.) And now Colin says Google is entering a new era that could make you rich. It’s all thanks to the return of Google’s billionaire founders Sergey Brin and Larry Page. They retired three years ago… But now they’re back to help launch Google’s biggest artificial intelligence project yet. And this Google millionaire says he’s found a way for you to profit from this new AI project right from your brokerage account. [Click here for the full story.]( -- Waiting for the Right Pulse Instead, I waited until the momentum indicators showed “negative divergence” – which they did by early May. Following that quick decline in April, GDX rallied to the $36 level. Once again, the stock was overbought and trading far above its 50-day MA. All of the moving averages were extended far away from each other. So, the chart showed nearly the same setup as it did in mid-April – with one key difference… This time, the MACD and RSI indicators were lagging behind the move. While GDX was rallying and trying to make a higher high, the momentum indicators were making lower highs. The momentum behind this rally was weakening, an early warning sign of a decline. This was a much better setup for a short trade. GDX was just as overbought and extended as it was a few weeks earlier. Yet this time, there was a higher probability that GDX could pull back toward its 50-day moving average line. So I recommended a position that would profit as GDX snapped back toward its 50-day MA. Here’s what happened next… [(Click here to expand image)]( It took less than two weeks for GDX to snap back to its 50-day MA. Folks who bet on the decline by selling the stock short could have made $3 per share. That’s a gain of nearly 9% – in just two weeks. That’s not bad. But we generated a gain nearly seven times greater by using options. Rather than selling shares of GDX short, I recommended an option trade that earned 65% over the same time frame. Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. You Can Do This, Too This isn’t luck… it’s a system that I’ve carefully created over my 41-year trading career. And you could have achieved an 82% win rate by following it since October 2022. If it seems hard, don’t worry. You can learn more about the Pulse System [right here](. I’ll guide you every step of the way. Best regards and good trading, Jeff Clark Editor, Market Minute IN CASE YOU MISSED IT… [Where’d all the money go?]( They printed $13 Trillion… Gave you $1,400… Sent the rest to their friends… And left you with inflation. But what’s coming next could be much worse. 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