WEEK IN A NUTSHELL:
- In spite of the high volatility, almost no change for the week for the Dow Jones and the S&P500, while the Nasdaq closed a touch above 2% up.
- Energy and
Materials Sectors
were slightly up, Financials down again
- 30 Year Gov Bonds took a turn down
- Crude Oil
climbed, causing much commotion in the markets
- Gold continued
its strong climb but may be hitting resistance
- Once again, our Long Term Portfolio is still in cash as we wait for the day the market gets out of this hellish fall (and that, unfortunately, may still be a long wait)
- So we are currently focusing on short term trades
PORTFOLIO AND TRADES
Let us look at the short term trades we had last week, then we'll address all the other points in more detail.
TRADES - We took advantage of the fallback the market had in the second half of the week with these two trades, on Wednesday and Thursday:
Fig. 1a - Q's Trade Alerts, 5 min view
We utilized a November Put option on the Q's, as shown in this chart
Fig 1b - QAVXF trades
The first trade was actually very short, less than half an hour. We closed it (behaving very cautiously given the high volatility) when our real time indicator turned against the trade but we still gained 11% on that trade. The second trade was a bit longer and delivered a 29% profit in about one day.
So the standard $2,000 amount we utilize in these reports grew to $2,744 (for each trade we trade however many option contracts the $2k can buy). That gain equals 37% of the initial capital. Great result, once again!
Note 1 - The table shows what you could do with a $2,000 amount utilized each trade. We are not compounding or re-investing, we buy the number of contracts allowed by the opening option price.
