We don't have all the details yet but it seems like unemployment benefits won't be extended and that means about 1.5M people will no longer be considered unemployed – problem solved! The question for next week then is, will this cause the Fed to begin tapering and the answer is – NO!
Don't be silly, the Fed is not going to taper right before Christmas and we won't get the minutes of this meeting until late January so other than the usual 4-6 word change in the statement, what do people think is going to happen next Wednesday?
This will not stop the Financial Media from filling page after page and hour after hour of TV time with endless speculation on what the Fed will do next week and what it means for the economy and the markets but we're not going to play that game. They won't taper and then the media will seamlessly flip to speculating on the next meeting, giving no indication that they wasted your time for two weeks wondering about the last meeting.
As long as we can keep our lower classess comfortably numb, all is well and we can keep on raking in the big bucks. We held our weekly Webinar yesterday at 2pm and, at about 2:40, I showed our Members a simple way to profit from the end of day market manipulations on the Russell by selling TNA puts. In this case, we sold the TNA weekly $72 puts for $2.22 into the close and they closed at $1.95, which was up 12% in about an hour and should do even better this morning. Beats working at Wal-Mart, right?
Even a Wal-Mart worker could have put some cash into our weekend trade on ABX (in a post we tweeted out), which was buying the 2015 $15/25 bull call spread for $2.30 and selling the 2016 $13 puts for $2.25 for net .05. Assuming they had the margin ($140 per contract), a minimum wage worker could have put $200 cash into 40 contracts and already that spread is worth $100 per contact or $4,000 off of $200 invested in just 2 days (up 1,900% on cash), gaining about 6 months of take-home pay at WMT in 48 hours.
The only problem is, the average Wal-Mart employee doesn't have $5,600 in margin, nor do they have options accounts, nor do they have time to invest because they are busy WORKING! This is how The Man (that's us!) keeps the workers down. We pretend it's the land of opportunity but the barriers we erect in our playgrounds assure us that only people who are like us can get in. Thus, the rich get richer while the poor watch TV.
We added another ABX play for our seminar people who missed the original entry (see out Tweet for details) while we pressed our bearish bet on oil by taking off our hedged short call on SCO. That left us very bearish on oil (/CL on the Futures) at the $98.50 line into today's inventories but, as I explained in the seminar, there are macro forces at work that make us confident.
IN PROGRESS