The US markets are closed on Monday and that could be a good thing because they certainly suck when they are open. On June 3rd we finished at 4,100 on the S&P 500 (/ES) and June 10th found us at 3,900, which was down 4.87%, but close enough and now, on June 17th, we're down another 200 points to 3,700 and that's now pretty much 5% on the nose. Usually we're happy with a 1% bounce off a 5% drop but really this is a 10% drop so we need a 2% (of the index) bounce, which would be 80 points (20% of the 400 we lost) on the S&P 500.
That would take us to 3,780 and that would be a massive one-day move in /ES (not that we haven't had them on the way down) so let's not count on it. That means we can't be cute with our hedges and need to stay well-covered into the weekend – even if today does look LIKE a recovery.
We've been going through our Member Portfolios this week and, generally, we've been making bullish adjustments as this still has the smell of a forced bottom. The untouched Money Talk Portfolio, which we reviewed on Tuesday at $200,566 (up 100.6%) has slipped to $192,786 (up 92.8%)as of yesterday's close – as I said at the time, as long as we pick solid stocks with sound, Fundamental Values – we can ride out these little corrections.
Trading platform Robin Hood (HOOD) is one example of a company trading below cash as their market cap has fallen below $6Bn at $6.89 but they have $6.2Bn in the bank. HOOD lost $3.6Bn last year and expects to lose $1.3Bn this year – so I'm not saying they are a good one – just pointing out an example. You still have to pay attention to the…
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