Bulls Take A Breather Before New Highs

June 26, 2020

Happy Friday!

After roaring back the last several months, all three major indices stayed within the last week’s range.

That means we’re taking a breather here as bullish and bearish investors battle.

Virus fears are ramping up as some states hit the pause button on reopening.

But others who’ve been slow to reopen like my state of Illinois moved into phase 4 today. 

The banking sector is weighing down the S&P 500.

That is in reaction to the bank stress test results and new restrictions from the FOMC, capping dividends and share buyback programs.

The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), is at 35.

That means volatility is 2x the average, so I expect this type of two-sided trading to continue.

A sideways market means more set up opportunities for us.

We’ve had a great hot streak closing 5 out of 6 trades as double-digit gainers!

This week, we couldn’t close out another double-digit gainer, but we have time.

Let’s stick to the plan and come out ahead.

Portfolio Update

On Monday:

  • Buy-To-Open the Novo Nordisk A/S ADR (NYSE: NVO) July 17, 2020, $72.50 call (NVO200717C00072500) up to $0.70 per contract or better, for the day.

Right now, we’re holding these positions - waiting to closeout for more gains:

  • GOODYEAR Tire & Rubber Co. (NASDAQ: GT) July 17, 2020, $5 put (GT200717P00005000)
  • Novo Nordisk A/S ADR (NYSE: NVO) July 17, 2020, $72.50 call (NVO200717C00072500)

Congrats on Your Wins!

Markets move quickly, and often we find ourselves moving onto the next trade without looking back.

However, when we have the chance to make a significant profit — it’s essential to take a second and celebrate your victories.

Here’s what some of you are saying:

I rode my stop up the ladder yesterday and finally got stopped out for a $450 profit, making 150% on my initial investment. Thank you for the great trade. Hopefully you will explain why the order came down to get out before the 50 % gain. – Geoff G.

Receiving emails like those is one of the best parts of my job. Thanks for writing in!

We didn’t close out any trades this week, so we don’t have an After-action report.

I’m looking forward to answering your most pressing questions next Wednesday.

If you want yours included, send yours now to [email protected].

Your privacy is important to us and I’ll never reveal your full name or email when answering questions or sharing feedback.

Have a great weekend, enjoy a few margarita’s and I’ll have a new money-making trade for you Monday.

To your wealth, freedom, and options!

Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%