Buy the Rumor, Sell Phase One News

December 13, 2019

We’re seeing the major indexes pull back from new all-time intraday highs as headlines crossed that China and the U.S. have agreed to a phase one deal.

The full details of the phase one deal agreement are slowly being released, but it still needs to be translated, reviewed and signed.

Looking to the broad markets, we’ve seen a tremendous run-up over the last month, which is why there’s profit-taking on this news.

On Wednesday, the Fed maintained its policy on holding interest rates at 1.5–1.75%.

Looking at volatility, we see the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), at 13.31.

This is below our key level at 15, which means we’re still likely to see a Santa Claus rally.

So giddy up, Dasher, Dancer, Prancer and Vixen!

And finally, we’ve received some great feedback on your new bonus report called 3 Strategies to Make Your First Million.

If you missed it, you can check it out here.

Now let’s talk shop...

Portfolio Update

On Tuesday, we bought to open Vodafone Group Plc (NASDAQ: VOD) Dec. 20, 2019, $19 call up to $0.30 per contract.

On Friday, you sold to close Vodafone Group Plc (NASDAQ: VOD) Dec. 20, 2019, $19 call.

Also, our Kraft Heinz Co (NASDAQ: KHC) December 13, 2019, $34 call expired at the market close.

There’s nothing you need to do and this position will be removed from your account Monday morning.

Right now we’re holding:

  • Evolent Health, Inc. (NYSE: EVH) December 20, 2019, $12.50 call
  • Editas Medicine, Inc. (NASDAQ: EDIT) Jan. 3, 2020, $45 call

After-Action Report

Vodafone Group Plc (NASDAQ: VOD) Dec. 20, 2019, $19 calls:

  • Date: Dec. 9, 2019
  • Reason: Our tracker flagged hidden activity, with Smart Money positioning themselves for a quick move higher by Nov. 13, 2019, expiration
  • Outcome: We exited for a 133% gain!
  • Improvements: We executed this perfectly because we sold into the push higher and took our quick gains.

Kraft Heinz Co (NASDAQ: KHC) December 13, 2019, $34 call

  • Date: Nov. 11, 2019
  • Reason: Our tracker flagged activity with bullish positions being placed in December expiration. Previous activity that occurred a few weeks ago prior was profitable and this activity looked to be those rolling up seeking more profits.
  • Outcome: Expired worthless.
  • Improvements: Prices were going in our direction, but two days after our entry shares were walloped after Goldman Sach downgraded the stock. The stock never was able to in time for us,

As always, keep sending your questions and feedback to [email protected]

My team and I will have a new trade for you on Tuesday.

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%