GDPhursday – Fed Thrill Ride Continues

Wheeeeeee, what a ride!  

We were doing a Live Webinar for our Members during the Fed excitement yesterday and our short positions into the Fed paid off HUGE – and then they reversed but now our new shorts are paying off HUGE this morning – and who knows what will happen after today’s GDP Report (8:30)?  

We took advantage of the silly move up into the close to press our index hedges on SQQQ and SDS in both our Short-Term Portfolio and our Option Opportunity Portfolio which is still drifting around the +15% level as we near the end of our 3rd month. Our best-timed call of the afternoon came at 3:25, when I said to Members in our Live Chat Room:

19,200 is a bridge too far for /NKD – good short as long as the Dollar is under 98. 

See – Futures trading is FUN!  Early this morning (4:03 am, EST) in our Live Chat, I put up a note for the morning shorting lines on our indexes:

We just lost 2,080 on /ES and 1,175 on /TF, so those are fresh bearish horses (tight stops above) and we’re lined up with /YM 16,650 and /NQ 4,665 so make sure all are below if you are shorting. 

Already this morning the S&P is back to 2,075 so our stop is 2,075 for a nice $250 per contract gain that pays for our Egg McMuffins – a nice way to start the day. They Russell is testing the 1,170 line and that one is good for $500 per contract – maybe croissants this morning!  

It’s wonderful to be able to take advantage of silly market moves after hours. Have you ever read something in the paper and wished you could place a trade but the markets are closed? Futures trading fixes that problem. Speaking of trading problems, Jim Edwards at Business Insider just published a list from Credit Suisse of “13 psychological biases that explain why we make terrible financial decisions even though they ‘feel’ right” that every trader should memorize along with “7 ways your brain makes you a terrible investor.”