The TRADING strategy at HX Trader is one that we have developed over our thirty years as a professional investor.

It is based on a methodology that combines what we have learned as a technical trader and a fundamental analyst.

Over the five years we have run the strategy, it has produced great results.

It has produced profitable trades over 70% of the time, generated a high single-digit average return, and done so relatively quickly – an average holding period of around 60 days.

Today, we will take a loss and make a very rare move for the strategy.

Here are the updates…

First, we are going to close out one of our longest-held positions, shares in Colgate-Palmolive Company (NYSE: CL).

This global consumer products leader has been a great stock over time, and we were looking to take advantage of a pullback in the shares back in October.

You can read our original report here.

We still think this is a great company, but one of the key aspects of our process is looking for companies with positive earnings revisions.

With the recent earnings reports, CL has gone from positive to negative revisions.

Here is a chart showing the stock price along with the analyst's estimates for 2025 EPS…

On the chart, you can see how recently the revisions turned negative.

We think the stock will likely recover, but our TRADING thesis no longer is true. As a result, we will sell the shares.

Plan the Trade, Trade the Plan.

Finally, we will do something we rarely do in the strategy. We are going to "double down" on a position that is currently losing money.

The reason we don't double down is not because we don't believe in our positions. Instead, we prefer only to do it when the risk/reward reaches extreme levels—the kind we only see a few times yearly.

We think we are there right now in our recent recommendation in shares of Booz Allen Hamilton Corporation (NYSE: BAH).

You can read our original report here.

This leading consulting company does almost all of its business with the government.

With recent concerns about cost cutting by Trump, Musk, and DOGE (Department of Government Efficiency), the shares have been cut by almost HALF in the last few months.

Meanwhile, the company reported good results a month ago, and their particular positioning – consulting in the intelligence arena – leaves them well positioned.

We think the move is overdone, and we would ADD to the shares.