And up we go again!  

The market changes almost as fast as the temperature this winter (we went from 0 to 60 in two days last week!) and oil and gold are all over the place (see this morning’s Alert for details) which is FUN! for us as we’ve been playing these wild swings.  

In Thursday’s post, we liked the Russell Futures (/TF) over 1,010 and this morning we took $1,000 profit and ran at 1,020 but our options spread is looking like it’s on track as well – but we’ll see how the week plays out before doing a victory dance. Monday’s are not very meaningful so we’ll have to wait until tomorrow to see how well the markets are holding up. We have “good” news out of OPEC as they seem to have agreed to hold production levels but it’s not like they could increase them if they wanted to – as we’re out of storage space.  

That’s boosting the energy sector and giving a lift to the Energy Sector as well as the Banksters who loaned them money, of course. I’ll be appearing at the Traders Expo in NYC this afternoon, teaching people how to Be the House – NOT the Gambler and, very appropriately, one of my top picks for the show is Freeport McMoran (FCX) and a turnaround in materials this week is just what the doctor ordered for that beaten-down stock. My notes from the PowerPoint slides are:

•Freeport has a lot of debt ($19Bn) and that spooks investors, but there is something else FCX has a lot of – $300 BILLON WORTH OF RESOURCES!

•While we’re comfortable buying this stock for $6.92 ($8.5Bn market cap) and waiting for gold, copper and oil to come back in price, it’s more fun to practice our core strategy of BEING THE HOUSE and selling risk by promising to buy FCX if it hits $5 by selling the 2018 $5 put for $2.16.

•By itself, that sale either nets us into the stock at $2.84 (43% below the current price) or, if FCX does not go lower, the margin on the short sale is just 0.52, which makes the return on margin a very nice 415% in 20 months.

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