When Bank of America Corp. (NYSE:BAC) says this bull market still has gas in the tank, some people aren’t willing to hear it. On his latest appearance on Varney & Co., Shah Gilani said “Just watch the market. It’s telling you it wants to go up!”
In this same clip, Shah also covers the potential for repatriation of U.S. funds, where that money will first be parked (hint: it won’t immediately go into creating jobs), and the reaction to raised Fed rates. Click now to watch…
Hedge funds and institutional trading desks make huge bets on mergers and acquisitions, much like the pending $69 billion proposed buyout of Aetna Inc. (NYSE:AET) by CVS Health Corp. (NYSE:CVS).
It’s not rocket science.
In fact, merger arbitrage, as the strategy is sometimes called, is easy and can be very profitable.
We just notched a gain of 455% in two days, taking off half of one of the positions we put on to play the proposed CVS-Aetna merger in my Zenith Trading Circle.
The other half of that trade could still yield us 2600%.
Here’s how we did it, and how you can, too…