The market is closed tomorrow in observance of Memorial Day. I hope you’re enjoying the weekend and are doing something you enjoy.
For some, the day off from trading is welcomed… after all, not everyone is making money in this choppy, news-driven market…
(This tweet is partially responsible for the recent volatility we’ve experienced over the last 2-3 weeks)
The next day following that tweet by the President, the futures looked like this:
However, instead of thinking defense like most buy and hold investors do when stocks sell-off… I was thinking offense… and here is what I told clients in my pre-market brief:
“Don’t forget about good old TLT. You know that is a favorite of mine and I hold it today. People buy bonds when they are scared, so it is no surprise that TLT is going to trade higher this morning. I always want to be a buyer on those dips.”
But if there is something you want to know about me, I don’t just talk it… I live it.
(some people like to say “I told you so”… I let my trades do the talking for me… not getting my alerts? Then click here to start)
Now, let’s assume I’m not a trained economist and a MENSA genius…just for a moment. You don’t have to be an expert in policy to think that the President wants to get re-elected in 2020.
If the stock market crashes because of a trade war… do you think that will help his cause?
Maybe his tweets are part of his negotiating strategy, or perhaps it’s something else…
Whatever the reason… it was pretty clear that it wasn’t going to get resolved overnight. And because of that, I made adjustments to my trading pretty shortly after that.
Within a week, I had a balanced portfolio. A combination of longs (call options) and shorts (put options).
(Not only do I teach people how to trade options, but I share my alerts and portfolio feed in real-time, if you’d like to start receiving them, click here to get started.)
You see, a choppy market isn’t always a bad thing. Sure it becomes challenging to swing trade. However, we’re also able to identify what the strong stocks in a weak market are.
(I put my own money behind my trade ideas, want to receive my alerts in real time? Click here to get started.)
Keeping a balanced attack, taking profits when you get them, and not trying to pick tops and bottoms is some of the best advice I can give you right now.
Also, look for opportunities in stocks that have little to nothing to do with the China-U.S. trade deal… For example, trading options on recent IPOs.
(I don’t trade on the IPO day, that’s amateur hour…instead I wait for the options to roll out, find out more about my service here.)
I expect the markets to be up and down until the upcoming G20 Meeting. That said, I plan to stay on the offensive.
I was on the right side of the SPY trade on Friday, and I anticipate to catch that trade many times over again in the second half of the year.
Whether stocks bounce back this week… or they don’t… I’ll be ready. And if the right opportunity comes across the table… I’ll be in a position to take full advantage.
Now, I can’t guarantee that I’ll have any triple-digit winners next week, or any high five-figure winning trades… but I can tell you this… I will be looking to put on trades that can yield those type of returns.
Because the best defense is offense. If you’re not a Weekly Money Multiplier client and would like to join, click here to get started.