It is possible that we are facing a once in a life time opportunity here in the equity and commodity markets.
The SSO (S&P 500 ultra shares ETF) closed today at 19.01. The high was 100 just 13 months ago. What a bargain – even if we just get back to 30, that would be a 50% gain. However, let’s not try to catch a falling knife (bloody hands). Is this a bottom? – I don’t know.
As always we will remain disciplined and not try to pick a top or a bottom but instead the fat in between.
For those who just sold you can follow me using the M48 model. When we use the ETF ultra shares (double the ride w/ diversification) we can make significant amounts quickly to help heal your wounds. Stay tuned and keep your head up – what you did yesterday is now old news.
Time to move forward and continue to cut our losses short and let our profits flow.
For the traders who bought the SDS (ultra short S&P) via my last post. Your entry should of been between 100 and 110. Move your stop to 115 up from 99.05 to protect profits. You may also want to sell half of your position here and keep the remaining w/ your stop at 115. I would not add or initiate a new trade on the SDS. The close was 128.19 but dropping in after hours. Nice gain for two days.
M48 = 100% cash
Safe Money BPA Product – you get 100% of the S&P 500 less a spread of 1.5% w/ absolutely no risk to your principal. If the market goes up, you win. If the market goes down, no risk to principal. Perfect for IRA money. It’s very easy to sleep at night with this product.
-Have a nice weekend everyone.
-Always read the risk disclosures