Great Sunday to you all,
Here’s to you all having had a lovely weekend and ready for another wonderful week ahead. The markets have seen endless up days in 2019. The first trading day in 2019 had the S&P 500 (SPX) open at 2476, days later and the SPX is at 2596. Volatility seems to be a distant memory for investors and traders. Prior to the start of 2019, all anyone could hear coming from the talking heads on CNBC was that we are in a bear market and headed for a recession. I will admit the level and pace at which we declined was a tad startling, however, having issued warnings to subscribers that we should see a bottom into the late days of December followed by a bounce, recent price action has been of little surprise. The interesting part begins in the days and weeks ahead.
All eyes will be watching the language and actions of UK Prime Minister Theresa May and Brexit not to mention clumsy-thumbsy President Trump and his twitter actions regarding China and the trade deal. Lots of these events can shake the markets. The takeaway is, where do we go and how can we yield? I will say this, I believe we are headed for further consolidation rather than reaching for new highs just yet. The consolidation period is likely to last until Spring 2019 (March) where we will likely find a new bottom (lower than the December 2018 lows) and then be off to greener pastures. How can you yield? For the less active investor, Astute 12 this where we use cost-effective hedges with options on long positions (positions you already own). For those who which to trade the swings in this market? Our VIX6 is prime to capitalize on market volatility to produce semi-monthly income. Our most recent trade is set out till February 1st, 2019 where we use mathematical statistics and time to your advantage. Want to protect your long stock and systematically yield on market volatility? Click Become An Astute Insider below and be apart of the journey!
Risk & Reward
Our most recent hedge, in place until February 1st, 2019. At the time of this post the SPX is trading at 2596, we start realizing profit below 2500. That’s 96 points away. Far? Yes, but this market has seen declines of greater depth in even shorter time spans.