The market has continuously run-up, only to be let down by no follow through!
We opened up on the day and it looks as though the bulls were in charge. Then post the Fed minutes, it looked as though the bulls were really in charge, being up as much as +260 Dow points and hitting as high as 25,267.
Astute issued warnings signs to subscribers prior to the Fed minutes, that this market looks weak, and it looks as though we can not maintain Dow 25,000. The Fed minutes came out and we took off. We had constructed hedging positions for subscribers in the SPY & SPX in order to take advantage of this potential drop (we were anticipating).
Crackle went to pop and the flame was out, the Dow had given back the gains and this market looked even weaker. The Dow ended the day closing down -167 points to 24,797.
Prior to the Fed minutes, one of the trades we built were as follows;
The hedge has returned just under 80% in a few hours! Is this what we consistently do, timing the market and day trading? Of course not! We pay attention to smart money.