With just a “little” bit of geopolitical tension raging, the market has taken pause at an historic top. Russia, Ukraine, Israelis, Palestinians, Middle Eastern folks, and our own economic uncertainties at home have created such chaos the market doesn’t know where to run at the moment. Plus, we’re in the summer doldrums at the moment.
The market hates uncertainty.
So we need to wait it out for a few days. It’s never safe to buy with this much tension because then you’re just throwing something at the wall, hoping it sticks. That’s not a safe way to invest. Contrarians, momentum buyers, and shorts alike, we’re all waiting to see what happens next.
After closing many winners in Easy Retirement, we do hold some losers. But they all remain on hold. We’re also finding new opportunities all the time.
Our newly issued buy on the Lumber Liquidators (LL) November 60 calls is already picking up traction, running up about 19% since recommendation. LL still has a massive gap to fill around $70 off oversold MACD and RSI. This shouldn’t take too long.
The eBay (EBAY) January 52.50 calls are up about 10% as the underlying stock shows signs of life off the lows. The Bed Bath & Beyond (BBBY) August 60 calls may be down -24% at the moment but the stock is coming back.
We also hold the Staples (SPLS) December 12 calls. These were bought at 60 cents. They now trade at 50 cents.
The Quiksilver (ZQK) January 2014 3 calls haven’t worked out well yet. But we still have plenty of time. Insiders have been buyers in recent months.
We’re down on the GameStop January 50 calls, the Coach January 50 calls, and the LULU December 50 calls but we’re still holding with plenty of time remaining. What we may look to do – at some point – is close them out and open new trades to make up for the losses.
Overall, Forgotten Profits has been rolling along beautifully with good gains closed out. We’ll have new positions out soon, too. We have about six new trades on radar. We’d rather not issue them in such a toppy, volatile market when geopolitical tensions could cripple everything.