Even on Wall Street, where ruining the lives of the middle class is a sporting event, you would think that the tragic death of 298 people being shot down in an airplane would AT LEAST cause the markets to pause for more than a few hours. That's not what the Futures would have you believe – they are moving up this morning (7:30) as if shooting planes out of the sky isn't a reason not to trade stocks at their all-time highs.
While our long trade ideas from yesterday's morning post worked out fantastically, we were very fortunately NOT GREEDY at 10:03, when I said to our Members:
Philly Fed up huge (like NY), 23.9 vs 10 expected though 17.8 last month means they were just being too pessimistic. That should give us a nice pop but I'd take those Futures profits off this run!
There goes $102 on oil! Congrats to the players! That's the new stop line, of course.
That was a very quick $1,000 PER CONTRACT profit on /CL and, right after that, we got the plane crash news so we increased our hedges in our Short-Term Portfolio and we added BA July $128 puts at $1.25 (because it was a BA plane involved in the incident) and they finished the day at $2.18 (up 74%) as well as DAL Aug $37 puts at $1.50, which were already $1.92 by the day's end (up 28%). I don't like to take advantage of tragedies like that – but it was the fastest way to add good protection to our portfolios.
Those USO Aug $39 puts we picked yesterday morning (and these are just the FREE ideas!) finished the day at $1.44, despite oil jumping up over $103, so we're very happy with those and will be looking forward to things calming down a bit in the near futures. It's not just airline attacks, we also had Israel moving into the Gaza yesterday and, even though neither one of them have any oil – anything in the middle east is an excuse to pump oil up into the weekend so they can rape you at the pumps.
We took a long poke at the Russell Futures (/TF) this morning but all nickels and dimes so far, which means the morning "bounce" is weak and we're more likely to go down than up – but it's a very tricky call with today being July Options Expriations.
Still, I certainly wouldn't go into this weekend without some serious hedges! We'll discuss some more of those strategies in today's Member Chat.
Have a great weekend,
- Phil
Tags: EBAY, Futures Trading, Hedging, LVS, Oil, Russell 2000, SCO, Ukraine, USO, YUM
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