S&P 2,000 – YAY!!! We did it, congratulations, fantastic, go markets! OK, now what? Now we'll see if we can pop 17,160 on the Dow, which is 2.5% below the Must Hold Line on our Big Chart. We also need to firm up over 11,000 on the NYSE (another Must Hold Line) and then we'll be looking for 1,200 on the Russell and 17,600 on the Dow and THEN we are into the next leg of our rally . Until then, we need to be just a little bit cautious. Fortunately, we already placed our hedges and now we're ready to BUYBUYBUY off our Buy List as well as 10 new bullish trade ideas we'll be discussing in today's Webcast (1pm, EST). This one is going to be Members only though, as we're picking new positions for our portfolios. As you can see from our Big Chart, the Russell is our lagging index and has already been to the promised land over 1,200. That's why, last Thursday morning in our Live Member Chat Room , we added an aggressive long using TNA, the ultra-long Russell ETF: With TNA at $73.30 today, the same logic applies and the Sept $72.50/76.50 bull call spread is $2 and the Sept $68 puts can be sold for $2 to offset or maybe the ABB March $24 puts at $2 instead. As with last month, this isn't a portfolio play for us as we're already very bullish in the portfolios – this is to cover yourself if you think you are too bearish and a pop over the highs will kill you. It's only been 3 sessions but TNA has already popped to $75.10 and the Sept $68 puts have already fallen to $1.30 and the spread is now $2.40 for net $110 gained per contract – up infinity from the net zero cash basis! The ABB puts are a little slower moving at $1.50, but still very nice for a more conservative play. I'd take that $110 per contract and run though as it's a nice 3-day profit and pays…
S&P 2,000 – YAY!!!
We did it, congratulations, fantastic, go markets! OK, now what? Now we'll see if we can pop 17,160 on the Dow, which is 2.5% below the Must Hold Line on our Big Chart. We also need to firm up over 11,000 on the NYSE (another Must Hold Line) and then we'll be looking for 1,200 on the Russell and 17,600 on the Dow and THEN we are into the next leg of our rally.
Until then, we need to be just a little bit cautious. Fortunately, we already placed our hedges and now we're ready to BUYBUYBUY off our Buy List as well as 10 new bullish trade ideas we'll be discussing in today's Webcast (1pm, EST). This one is going to be Members only though, as we're picking new positions for our portfolios.
As you can see from our Big Chart, the Russell is our lagging index and has already been to the promised land over 1,200. That's why, last Thursday morning in our Live Member Chat Room, we added an aggressive long using TNA, the ultra-long Russell ETF:
With TNA at $73.30 today, the same logic applies and the Sept $72.50/76.50 bull call spread is $2 and the Sept $68 puts can be sold for $2 to offset or maybe the ABB March $24 puts at $2 instead. As with last month, this isn't a portfolio play for us as we're already very bullish in the portfolios – this is to cover yourself if you think you are too bearish and a pop over the highs will kill you.
It's only been 3 sessions but TNA has already popped to $75.10 and the Sept $68 puts have already fallen to $1.30 and the spread is now $2.40 for net $110 gained per contract – up infinity from the net zero cash basis! The ABB puts are a little slower moving at $1.50, but still very nice for a more conservative play.
I'd take that $110 per contract and run though as it's a nice 3-day profit and pays…
