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Did you guys notice the S&P 500 quarterly rebalance that happened Friday afternoon?
For my new traders out there, the S&P 500 and Nasdaq 100 regularly shuffle the companies that are in the two indexes. The S&P 500 — the largest tracked index in the world — rebalances on a quarterly basis, while the Nasdaq 100 is reconstituted once a year.
We already know that when indexes rebalance, professional traders hone in on these moves because there's a lot of money changing hands.
Last Monday, I told you guys about the different stocks that would be added and/or subtracted from the index. I also told you that I would give you a free pick that's in line with our Burn Notice service...Those of you who are subscribed to my Burn Notice VIP alerts actually ended up with three great stocks I suggested you trade before the Friday close.
So today, we'll go over some of the S&P 500 quarterly rebalance additions and deletions. I also want to cover how I spotted these trades, what I expected the outcome would be, and how I strategized each move I made. | | |
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