My apologies for not writing to you sooner… I had a bad death in the family.
While it’s a bit painful, I have a job to do. And I’m going to do it well. Life happens. He had a great life so I can’t be too down. While I work on updating all open positions and look for profitable opportunities, I needed to bring your attention to the massive volatile swings in the market.
I really wish I could say I am shocked by it…
Yesterday, we fell 260 points. Today, we’re up 124, stuck just under the 200-day moving average. But we’re not out of the doghouse yet.
In fact, when everything hits the fan, I wouldn’t be shocked if the Dow fell to 17,200. One way to play that potential move is by buying to open the DIA August 2015 176 put up to $4.20.
I’ve warned of impending doom for quite some time. It’s the reason we’ve asked that you not risk the house, or more than you can afford to lose at any given time.
The market has been nothing short of a mess.
We were well aware of the market deficiencies and what was likely the whole time. The only thing we’re shocked by is the amount of bulls that rushed in as toppy conditions told us to run for cover.
We knew Greece was in trouble. We knew things wouldn’t work out. And we didn’t need a crystal ball to tell us. The writing was on the wall. Now we have to hope that Puerto Rico doesn’t default… Or, we’re in a heap of trouble there, too. It’s a wait-and-see, though.
For the time being, hold all open positions. And consider selling to close half of the MU October 20 put for gains of up to 59%. Hold the call side of the hedge.
Good Investing,
Ian L. Cooper
Rapid Retirement System