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Tuesday, August 16, 2022


Thrilling Thursday – Markets Make a Remarkable Comeback While You Sleep

Nice reversal!  

The Dow is actually 100 points higher this morning than it was yesterday after falling 300 points at yesterday's lows.  Kudos to Doug, our Hedge Fund trader at Capital Ideas, who actually said to me yesterday morning that "this whole thing can end the day with the Dow higher" – he was only off by 12 hours…

Our first attempt at going long, from the Morning Report, was a failure as we blasted through all those levels but what fantastic entries we got during the day, as noted in our Live Member Chat Room:

August 15th, 2018 at 10:37 am | (Unlocked) | Permalink

Indexes getting worse, not even going to attempt to go long again.  Gold and silver way off too.  /SI at $14.50, WPM getting killed so good time to sell the 2020 $20 puts for $3+. 

/SI $14.40?  Wow!  /NQ just hit 7,340, that's down 120 for the day, about 1.5% so look for 25-point bounces to 7,365 (weak) and 7,405 (strong) but OUCH!

August 15th, 2018 at 11:18 am | (Unlocked) | Permalink

Huge 10MB build is very, very bad but note /RB had a draw so best bet to play at $1.99 but VERY DANGEROUS TRADE as the market is crazy at the moment and it's still more than two weeks to the holiday and we have a rollover in between

We really want to play /RBV8, long which is Oct at $1.884 at the moment! 

August 15th, 2018 at 11:32 am | (Unlocked) | Permalink 

/KC/Palotay – Ugh, I forgot I have 3 long /KCN9 that are getting clobbered.  Same as /SI though – great chance to get in at a cheap price ($114), if you can stand the pain.

The Nasdaq (/NQ) bottomed out at 7,316 and passed our goal at 7,405 so we took the money and ran at 7,425 and we'll look for a fresh horse to ride if the indexes break higher from here but a nice $5,385 gain off that call helps pay for my vacation – while I'm on it.  

As I said earlier in the week, learning to trade the Futures let's you get "fine-tuning" control of your portfolio and take advantages of silly market moves and, more importantly, slap on some last-minute hedges when the news hits after trading hours and you find yourself too bullish or too bearish.  

In our case, we are very well-balanced in our Member Portfolios and adding /NQ longs was a way to lock in some SQQQ gains from our Short-Term Portfolio, which gained $38,000 (38%) while the market collapsed as we had heavily hedged against EXACTLY the sort of thing that happened yesterday.  Despite the bullish year for the market, our main hedging portfolio is now up 150% as we've generally had good timing taking advantage of these market dips – though not yesterday as we left the hedged open and much of those gains will reverse but, that's not a terrible thing as the STP is a $100,000 portfolio that protects the longs in our $500,000 Long-Term Portfolio and those losses will also reverse. 


Sorry, apparently trying to upload our portfolios breaks Disney's Internet.  I've been trying to get back on since 8 so I won't try to finish the post and we'll more on to Chat! 



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