Wheeeee, what a ride!  

This morning we were down about 2.5% in the Futures after a very disappointing close yesterday when the FAKE rally began to unwind ahead of schedule.  This is what we warned you about on Friday, so don’t act all shocked to see it actually happening today – especially since yesterday, right in the moring post, we gave you a Nasdaq hedge (SQQQ) that would make 160% on a small sell-off like this one.  

Click on picture to enlarge

This morning, SQQQ will be up around $27 – up 10% from our entry and the net $2,300 spread is $5,000 in the money already (over 100%) – not bad for a day’s work!  As it stands this morning, our bounce lines are holding up but still a bit iffy and we will need to get more bearish if those weak bounce lines begin to fail at (using Futures levels, not the BS closes):

  • Dow 16,200 (weak) and 16,650 (strong) 
  • S&P 1,900 (weak) and 1,950 (strong) 
  • Nasdaq 4,550 (weak) and 4,700 (strong)
  • NYSE 10,050 (weak) and 10,300 (strong)
  • Russell 1,130 (weak) and 1,160 (strong).
  • That is 5 more red boxes than we had yesterday morning – NOT GOOD!  3 of 5 is our rule to get more defensive and that’s why, at 2:27 in our Live Member Chat Room, I said to our Members:

    Since the Long Term Retirement Portfolio is at $660,226.50 (+32%) and that combines to a new record $956,930.40 and that is up 59.5% in 21 months – I will have to reiterate my usual call that the CORRECT thing to do here is cash out at least half – whether you like the positions or not – because making 30% per year for two years is NOT USUAL and we generally like to play for what usually happens. 

    Amazingly, our Short-Term Portfolio finished the day even higher, up an additional 50% from our review just 10 days ago – without changing a single position.  Needless to say, we were well-positioned for last week’s market insanity but, as I also said to our Members, when you make 50% in a week, no matter how GOOD you think you are – you have to recognize there’s an element of LUCK involved and it’s often best to just TAKE THE MONEY AND RUN.  Often enough that it’s simply good policy to do so.  

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