As we predicted yesterday morning, nothing was going to stop the S&P from banging up to that 2,100 line. Not for lack of trying, either as we had a 22% decline in the Empire State Manufacturing Index and a 2% decline in the Housing Market Index but none of that matters because Greece is going to be fixed again so the markets flew higher – albeit only at the last minute on no volume. Still – it's a pretty picture, isn't it?
We demonstrated the idiocy of the markets yesterday for our Members in our Live Webinar by scaling into a short position on March Oil Futures (/CLH5), which ran up while we were doing a demonstration on scaling in. We decided to stay short overnight and, this morning, we were rewarded with a $4,000 gain. Now we've flipped to the April Futures (/CLJ5) in our Live Member Chat Room, which we're shorting at $53.50 in anticipation of another nice dip today.
Of course we told you, right in yesterday's morning post (which you can have delivered to you pre-market daily by clicking here) that we were shorting oil at $53.50 and they fell all the way to $51 at 10 am, for a lovely $2,500 per contract gain. By all means though – SAVE your money and DON'T subscribe to the newsletter – I'm sure everyone you read gives you trade ideas that make $2,500 per contract in 95 minutes, so there's no need to read our little ideas.
We were more aggressive than that though, as we suggested pairing it with 20 of the 2016 $28/33 bull call spreads at $3.30 ($6,600) for a net $2,100 outlay on the spread. As you can see from the chart, XHB is up almost 20% since our call (not bad if you were just playing the stock) and, as of yesterday's close, the 2016 $28 calls were $8.90 and the $33 calls were $4.60 for net $4.30 x 20 contracts ($8,600) less the $1,400 we still owe on the short puts is $7,600, which is up a total of $5,500 (261%) in 2 months – 10x leverage to the move the stock made!
That's OK, we'll find some other trades for you in our Member Chat Room or through our Top Trade Alerts, which have already become very popular as a new product this year. Or, you can keep reading these posts though our tradional free trade period is over until next earnings season, so mostly you'll just hear about the trades you missed in the morning posts.
If you don't understand how making 68.8%, 261% and 36.6% in two months relates to "getting rich slowly" – then you REALLY need to subscribe!
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