Astute Strategist Blog

Market Context
Happy Weekend,

The S&P500 closes above 2800 for the week and all is right with the bull market? Looking closely at this market and where it is headed, it almost indeed seems to good to be true. Consider the fact almost all 3 major indexes closed above big round numbers, along with the S&P, the Dow above 26,000 for the week, Nasdaq lagged closing just under 7,600. Is this the silver lining? In all honesty, I am of the opinion that we are setting up for a spring arrival of volatility. Add the fact that the S&P did not close the month of February at or above 2800, it almost appears to be the calm before the storm.

Though I am not entirely bearish just yet, we could start seeing volatility potentially taking us to test the lows. The lows I am looking for are the ones elected in the month of February and for the year, 2612 and 2444 respectively. I must reiterate, I am not all out bearish just yet, this will begin to take shape only if we violate the low made this past week (2775). It is likely we first test the resistance levels I referenced in past blog posts those figures being between 2815-2820 if those are breached to the upside, then in all likelihood a slingshot takeoff to the upside is possible, somewhere around 2840-2850.

There is a saying by Wall Street fictional character Gordon Gekko, “Bulls make money, bears make money and pigs? They get slaughtered.” This has been a saying that has held true, everyone loves a bull market up and until it’s too late to sell and cash out and into profits, then often there’s the justification “I am in it for the long haul.” Whether in it for the long haul or not, hedging/protecting against volatility is without a doubt underrated and overlooked when it comes to protecting your hard earned money. This is what inspired Astute Strategist to begin its Astute Millionaire weekly education class. We show you how to stay long stock and hedge/protect those shares against volatility. All for less than a cup of coffee a day. Partake in the greatest education that will keep your hard earned money safe while continuing to grow. Click here

Risk & Reward
Our weekly class got long Southwest Airlines (LUV) and Apple Inc. (AAPL) with hedges to protect the shares. Below is the risk graph to illustrate our position in LUV, as you can see we have ample protection on the shares and the beauty is in what happens moving forward. This is Warren Buffett type wealth creation. Find out how here