With This “Houdini” Exit, We’re Compelling More Profits Out of This Illustrious Trade

Harry Houdini is still one of the most recognizable names in the world.

And that’s quite a feat, considering that the 91st anniversary of his death is coming up on Halloween day.

I bring Mr. Houdini up today because when I look at our favorite Pop & Drop play – Columbia Sportswear Co. (Nasdaq: COLM), I find an eerie similarity to this great “escapesman.”

Houdini reached a certain level of notoriety with an escape act that included breaking out of handcuffs and jail cells all over the U.S. and Europe at the turn of the 20th century.

But when he upped the show-biz ante to death-defying feats submerged in diverse bodies of water like rivers and lakes to a massive, on-stage milk can, his fame and fortune as an escape artist became legendary.

The pinnacle of his escape acts involved the now-famous Chinese Water Torture-Cell where he was suspended by his feet and lowered upside-down into a glass cabinet that was locked and filled with water.  The escape required him to hold his breath for more than three minutes. The performance was so daring, and such a crowd-pleaser, that it remained in his act until his death in 1926.

Houdini was known to possess an unusual amount of strength and flexibility combined with a masterful skill at lock picking that he used to achieve many of his escapes.

But to this day the exact method Houdini used to escape the infamous water torture cell remains a secret.

And that’s where his famous exits and our profitable ones part company.

That’s because I’m committed to teaching all 10-Minute Millionaires exactly how we make these profits.

And I gave you the key piece of information about our “Houdini-like” exit on Columbia back on the very first day we entered the trade.

Let’s see how this little bit of magic happened…

It’s Not Magic, But It Sure Looks Like It

After we took profits on the first half of our shares on August 1, I sent a message that we should sell the next 25% of our shares at a second profit target of $62.97 – a price it recently hit.

Let’s take a look at a chart and see why this exit looked like a magical escape:

COLM

Within two days of that exit, Columbia had pulled back by -2%.

That’s not unusual after such a strong run-up.

And our exit wasn’t “magic” – it was merely understanding how to read the probable, emotional reactions of traders and investors by looking at charts.

Our trade in Columbia was using a strategy I call Extreme Turnarounds or Pop & Drops.

These are the type of trades that move mostly sideways inside defined-reaction extremes at both the top and bottom of a price channel.

When we first entered this trade back in May, I drew those same defined trading support and resistance levels that Columbia had been respecting.

Here’s the exact chart I used back then:

COLM-2

You can see that the blue line showing the upper resistance level was right at $63.

So after we took our 12% profits on the first half of our shares, I told you set your second profit target at $62.97 (a 14% gain), which is just a few cents under this key support level.

That’s because price often tests (reaches a price and then retreats) an old resistance level once or twice before breaking through.

And that’s exactly what happened here.

And so the magician has revealed his “secret tool.”

Only this time, it wasn’t a lockpick to get us out of a cell.

Our tools are the tools of the trader that unlock the profit potential of stocks so we can fill up our accounts on the way to our first million.

If you took profits at either or both of these profit targets for Columbia, please send me a note to tell me how you did, and how you plan to celebrate. I love to hear your stories and look forward to reading them! All you have to do is click here.

Great trading,

D.R. Barton, Jr.

16 Responses to “With This “Houdini” Exit, We’re Compelling More Profits Out of This Illustrious Trade”

  1. I also joined recently, I too have problems understanding how your system works. I get a lot of mail with advertisement stuff and really I have as of yet to come to understand when I get any of the recommendations. I have a subscription to about 5 of the advisory letters. Maybe you all can give us a better way to sort through and know when we are receiving recommendations hope you can help. I have yet to figure out exactly how to use your letters to any advantage and I am so far disappointed in the way they seem to work. It mostly seems like you want us to buy more letters while not even getting the information we have already paid for. Hope you can help us out with this…….

  2. I agree and share the comments of the members above. As a new member–the last 3-4 weeks-are their any current positions that I should be looking at taking? II would be very helpful if, in addition to all the verbiage that comes in the e-mails—that all currently recommended positions be listed at least once a week with entry and exit level prices clearly shown. Many thanks—will look for these requested postings

  3. I too am waiting for additional trades since I only have received two since I joined up in early September. I have since taken profits on those two mainly because I think I will be waiting for Gadoe and we know he never showed.

  4. Buy his book, read it three or four times, then make your own picks. You don’t need to wait on anyone for recommendations. Also study the educational material at Stock Charts.com. The system works and you can do it yourself.

  5. Add me to the list of complainers. I cannot separate the signal from the noise…constantly pummeled with emails trying to convince me to buy something else (despite the promise that as a Passport Fellow we are suppose to receive all publications for free)…Mr. Barton, if you really want your subscribers to benefit from your advice, then you need to fix the way you deliver information. It is broken (clearly as evidenced by the complaints you are getting!)

  6. same comments, I missed the colm trade also, I read most of comments, I belong to other moneymap recommendations, a clear trade recommendation would and should be marked differently from general sales information and trends, rethink how they are sent.

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