WaveStrength Trader subscribers have closed four gains in a row!

It all started on November 7…

I was beginning to research the resurgence of the newspaper industry, as most of the big hitters were striking deals with Internet companies to increase ad revenue…

The big story was that Google Inc. (GOOG:NASDAQ) started a three-month testing phase to give Google advertisers the chance to bid on ad space provided by big newspaper companies, including Tribune Company (TRB:NYSE) and New York Times Company (NYT:NYSE).

I was especially smitten with NYT, as its chart showed a direct correlation between price support at current share price (then at $24.10) and an optimistic change in the industry's luck. I anticipated a short-term price target of $26.64.

Bryan and I recommended to WaveStrength Traders that they buy NYT January Calls. We entered the calls for $2.15.

Six days later, NYT's stock jumped to a high of $25.09, enough to make our calls worth $2.80.

That gave WaveStrength Traders a 30% gain.

The same day we recommended those NYT calls, we also initiated a strategy shift in which we bought calls on the Dow Jones Industrial Average, via the Diamonds ETF (DIA:NYSE).

After the Dow hit new highs, Bryan and I were convinced that this bullish signal was proving strong. We recommended that WaveStrength Traders buy DIA December calls, which we also entered for $2.15.

Eight days later, and only two days after taking profits on NYT calls, we had gains in hand on the DIA and decided to take them after a nearly 100-point rally on the Dow.

That gave WaveStrength Traders a 16% gain.

Following up on a two-for-two record, Bryan and I saw an opportunity on the Retail HOLDRs Trust (RTH:NYSE) on November 27. But it wasn't an upside play in anyway.

It was “Cyber Monday.” Wall Street wasn't ecstatic about the Black Friday and weekend retail sale turnout… they were good, not “great.”

I pointed out that this cyclical drop in retail stocks occurred every year between November and January.

On that premise, Bryan and I recommended RTH January puts. We bought them at $3.30. That day the RTH dropped 1.62%.

One day later (and as we term a one-day winner!) the RTH dropped another 0.28%. Our puts were now worth $4.10!

That gave WaveStrength Traders a 24% gain… in only one day!

And today, we took our fourth gain in a row.

On October 31, I made a prediction that the telecommunications industry looked like it was about to rally, based on the Telecom HOLDRs (TTH:AMEX) chart. This was meant to be a longer-term hold, so Bryan went out to February `07 on some TTH calls.

We purchased them for $4.40.

Over the past week, the TTH has been holding strong. Then today, it rallied back to its most recent highs near $34.60. The TTH looks like it's about to break through to new price territory.

But to be fair, the Fed just announced today and is known to have a large effect on the market. Seeing that our calls were trading at $5, and considering that the telecom industry revival is a long-term thesis we can return to again, Bryan and I decided to take the gains off the table.

This gave WaveStrength Traders another gain of 13.6%.

All told, WaveStrength Traders have made four consecutive gains since November 7, a 100% accuracy rating since that date.

They've made total gains of 83.6% in a little over a month!

We're still holding one open position on a shorter-term “January Effect” play.

I expect this to be our fifth gain in a row… and I expect to have a new recommendation to WaveStrength Traders by the end of the week.