I love it when a plan comes together. I'm not going to say "I told you so" – I think my 9am tweet on Tuesday already made that abundantly clear. That morning post had already been published for our Members at 8:08 am, where I said:
Why then, do I prefer cash when there is so much money to be made? Because, at this point in a bubble, it can all be taken away from you just as quickly, and the minute you lose site of that you are in BIG TROUBLE! My question to you is, if you can make 20%, 40%, 50% on short-term trades like these, why leave anything on the table? Make a trade, make your money and get back to cash. Don't stay at the table and play until you give it all back!
At 8:23, our first Futures Trade Idea in Member chat was shorting the Dow (/YM) at 16,000 and shorting the Russell (/TF) at 1,130 and we were in and out a few times since but we caught 15,800 on the Dow yesterday for $1,000 per contract gained in 2 days and 1,100 on the Russell for a whopping $3,000 per contract in less then 48 hours. This is what I was talking about – why leave money on the table when we can make hit and run plays like this?
At 9:01 I reminded our Members to short oil at the $98.50 line, we rode those down for $1,000+ gains per contact below $96.50 yesterday and we're hoping oil goes back to $98 this morning so we can short them again! As I said in last week's Webcast, where we made a short play on oil miles ahead of the drop, we saw no way that OPEC was going to get their act together to reign in the oversupply of crude.
We also focused on the Russell as our favorite short, using 20 TZA Jan $19/23 bull call spreads at $1.86, selling 20 Jan $17 puts for net $720. That spread finsihed the day yesterday at $2,180 for a $1,460 gain in a week (up 202%) and THAT is how you hedge to the downside!
You can get trade ideas like this every day by becoming a Member at Philstockworld. A PSW Annual Report Membership gives you access to all of our daily posts as well as archived chat sessions AND a subscription to Stock World Weekly, all for less than $1 per day. Doesn't that make a perfect Christmas gift for all the investors on your list?
This morning we can play the Russell LONG off the 1,100 line (/TF) in the Futures as it's a good support line and should give us a bounce. Speaking of bounces, when we have corrections like this, we look to see if we get strong or weak bounces off these support lines and per our 5% Rule™, we're going to be looking for the following today before we even consider getting seriously bullish again:
IN PROGRESS
