Why Be Long Term Bearish on Markets?

In this crucial weekend video newsletter update we go through the case to be bearish and how you can protect your life savings and even profit from another downside move in the market. If you didn't capitalize on the trading opportunities last week then watch this video right now for the trading opportunities next week you can't afford to miss...

5 Comments

  • Brian Sullivan

    April 14, 2018

    This is pretty much my first comment, but that was amazing. great job Don!_ I think there's lot of people with their head buried in the sand?_maybe that's why they don't want to tune in and see something that's based on fact?
    Nice. Thx

  • Sonja Hughes

    April 14, 2018

    Don,thanks for your thoughful take on the market!

  • Al

    April 14, 2018

    This was an interesting video, Don. I agree, if not for the "stand-in" bullishness of energy on Friday, the markets might have been substantially down based upon the financials. However, I smelled this. Because the financials (JPM in my case) were up huge on Thursday. JPM, again, was up about 3 points on Thursday with their earnings scheduled to be released Friday before the open. So, I was long lots of JPM calls Thursday and they are doing very well. But two things: First, I noticed that calls/puts on JPM were 4:1 Thursday, which worried me because it meant that the whole market had already piled into the expected earnings announce ramp for Fri pre-mkt. Second, the IV of the calls I owned (and looked to add to) was enormous, and so, as I was adding to those calls, I had to buy DITMs, $5, $8 calls. So on Thursday, I am thinking, Hmmm, everyone and his mother is already in on this trade. Here is JPM +3 pts BEFORE the announcement, very uncharacteristic. You mean, we're going to see 3++ points MORE JPM on the earnings announce? Not that likely. So I sold most of my calls THURSDAY.

    I concluded that Thursdays 3 point move >>WAS<< the reaction to earnings and that if JPMs Friday reaction was WEAK, then those calls would be obliterated, both on delta AND the IV collapse. And that is what happened. $8 calls turned into $3.20 calls.

    I'm generally thinking that JPM should bought on follow through weakness through this week as MS reports. The earnings were pretty good, and the market can never tear itself away from JPM.

  • Roger M

    April 15, 2018

    Thanks Don for your future look at the market..That is why I keep my Atomic Hedge on all the time.
    Roger

  • Dj

    April 16, 2018

    good information. thanks don.

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