As you can see from Doug Short's S&P chart, we're having a modest pullback on increasing volume as things return to "normal" following the holidays. You can see why we elected to sit out the past two weeks – already the gains have reversed and we're right back to where we were just before Christmas, where we took the opportunity to get to CASH!!!
We've deployed that cash in a very profitable fashion with some great short-term plays, including last Thursday's short on oil. In yesterday's morning Alert to Members, which I also tweeted out at 7:30 am, my trade idea to short oil at $94.50 yeilded a nice $1,250 gain on the day as oil bottomed out at $93.20 with a stop out at $93.25. Those Alerts are usually sent out to our Voyeur and higher subscription levels. Though, for all of our Trade Alerts, you need a Premium Membership, of course.
We haven't re-opened our USO short or SCO long positions as we're hoping for a run back to $95 on oil inventories (tomorrow, 10:30) where we can make a contrary play BUT, if oil hits $94.50 and fails again, we will take that short with tight stops. Meanwhile, the absense of short-term shorts leaves us long-term long with our Dec 2019 contract hedges - so let's hear it for the manipulators today!
You must login to see all of Phil's posts. To read the rest of this article now, along with Phil's live intra-day comments, live trading ideas, Phil's market calls, additional member comments, and other members-only features - Subscribe to Phil's Stock World by clicking here.
To signup for a free trial membership, click here.