I’m sure you’ve watched as the Dow sank 500 points. It hasn’t been pretty.
What’s a bit worrisome is this. If the Dow fails to hold that 200-day moving average, we could potentially fall to test 16,000.
Let’s hope that doesn’t happen.
Because of such wild volatility in recent days and weeks, we’ve held off on issuing a ton of trades. That will soon change, though, if there’s a substantial change in market direction.
For now, though, we need to see if the market can hold support… and take it from there. We are also holding all open positions.
Over the last week, we did close losing positions in BABA, and closed half of the SLV April 18 put for gains of up to 52%.
We also opened new trades with a Mattel (MAT) hedge. We picked up the MAT July 27 call at $1.80, and the March 27 put at $1.45.
The stock is beginning to recover, but its still safe to have protection with the put.
Stay tuned for more and information on our next webinar.
Ian L. Cooper
Inside Value Trader