A Couple Of Interesting Months For Tesla Shareholders
It’s been a couple of months since I posted a hedge on Tesla (TSLA) (“Five-Star Safety For Tesla Longs“), about a month and a half since Tim presciently called a top in the stock (“The Telsa Top“), and about a month since we last looked at that Tesla hedge (“Cushioning The Blow For Tesla Longs“). In this post, I’ll recap that hedge and update how that hedge has reacted since. (more…)
Wow, what a difference a few days make. Should we call this latest rally the Yellen rally?
Just two days ago everyone was fearful of a decline, yet now all is forgotten. Now we can all get back to sitting back and comfortably watching the market the five year + bull market continue, right? Wrong. (more…)
Two Years Of Gold Bugs Getting Burned
In an article last week (“Gold: A Sucker’s Paradise“), ETFguide editor Ron DeLegge noted the illustrious list of hedge fund managers who have gotten burned over the last two years being long gold and related securities such as the SPDR Gold Shares ETF (GLD). One hedge fund manager who’s been on the right side of the gold trade has been our host Tim, who mentioned on Tuesday that GLD was his largest short position (“Repeating My Target for GLD“). (more…)
My view hasn’t changed since the middle of October. …this market is set-up for a nice decline.
And so far, while my view hasn’t been realized, the market hasn’t rallied further. In fact, the tight trading range at all-time highs has proven to be an excellent area to sell credit spreads. Moreover, I think the major benchmarks could be trading at levels that offer a wonderful opportunity to take a few short-term aggressive plays like buy a few puts. I typically, don’t buy options, but at these levels it’s hard to pass up…and we’ve actually had very good fortune buying puts over the past month. So, if you are a subscriber, stay tuned because there is a very good chance that I will be adding to our December positions tomorrow. (more…)
(Note from Tim: The original title of the post was “Protection Against Getting Annaly Raped” which, given the stock’s name, was kind of amusing……….but things are, ummm, a little touchy lately, so I thought I’d dial it back a notch!) (more…)
Admittedly I haven’t placed many trades over the past several weeks. Some may say that the more you trade the better. Increasing your sample size is the key to success. Trade small, trade often.
In some cases, yes, but if you are only trading a limited amount of highly liquid ETFs I’m not so sure it makes sense. Wait for the set-up to come to you…don’t force trades. And yes, while no one knows the destiny of the next move, why not allow pot odds to be on your side. (more…)