Are we jumping the gun?
It’s been so long since we’ve been bullish it feels wrong, doesn’t it? We’ve had plenty of long-term, well-hedged trade ideas in Member Chat this month but not too many aggressive shorter-term trade ideas so I’m putting together an aggressive list, like last year’s "September’s Dozen" that was 12 for 12 with huge winners, many pulling in 300% or more.
Although we still need to confirm that this rally is real on our Big Chart, let’s take a look at a quick dozen trade ideas for short-term gains. I like all these stocks long-term too (it’s always better to play short-term where your fallback is you own the stock long-term) but we what we’re looking for here is that immediate satisfaction you can get from some quick, monthly gains.
Are these trades riskier? Sure they are and they are trade ideas under the assumption that we hold our levels today and next week so no staying in them if the market sours but $85 oil and $4 copper and 11,200 on the Dow and 1,173 on the S&P give us some pretty easy markers to know if we’re still healthy.
This is NOT going to be a virtual portfolio, this is simply a list of trade ideas I like, taking advantage of low prices and a high VIX before we lose one, the other or both! Also, people sometimes ask if we ever pick just stocks and the answer is: Of course if we like a stock well enough to paly an aggressive option combination on them we also like the stock straight up as a buy! I’m going to put the current prices on the stocks we select to clarify that.
What we’re looking for is simple, a repeat of the action we got last year coming out of the Jackson Hole conference so we’ll be making some of the same plays with a couple of new ones as well. Keep in mind that THIS IS OUR PREMISE – we expect the S&P to go up from this line (with, perhaps, a rocky start the first week), certainly not falling below our -5% line at 1,173! We expect the Dollar to go down from 74 and TLT to stay below $108. If these things don’t happen – then our premise is blown and we DO NOT want to stay in…