Clubbed In The Back With A Pipe!

March 13, 2020

Thank god it's Friday!

We’re seeing a little relief today, but it’s been a tough and dark week all around.

We're in an unprecedented time in history dealing with an economic and biology crisis.

This dual crisis has been like getting a steel pipe to the back of the head that knocked us out.

Right now, we’re dizzy and trying to figure what the hell happened.

We’ve seen the circuit breakers kick in twice this week to halt trading in an attempt to stop the bleeding.

Despite circuit breakers and central banks injecting trillions into the financial system.

It wasn't enough to stop the Dow Jones Industrial Average from having its worst one-day percentage decline since 1987’s “Black Monday” yesterday.

Think that three weeks ago we were at all-time highs and now we’re in a bear market.

The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), at 63, levels not seen since the financial crisis.

The good news is that these are the same levels it peaked at twelve years ago.

The bad news is that the S&P 500 didn’t bottom out until a few months after it peaked.

The markets are difficult to navigate when there is panic.

We've done a great job with sitting on our hands and being in the safest asset thus far, cash!

The plunge lower has created a rubber band effect, which will cause markets to snap back higher.

But, this is a bear market and we need to treat it like that.

What I mean is that we will two-sided trading, but we will continue to see prices slide lower.

Two-sided markets are exciting because they create repeatable quicks profits opportunities.

More than ever is the time to relay on our training and experience to avoid panic.

It’s easier said than done, but necessary if we want to succeed and come out ahead.

I've traded through the financial crisis and learned that if you played loose, you'll avoid panicking.

I do that by scaling back the position size, which allows me to feel more relaxed and avoid making a poor decision.

By doing this, it helps save our emotional capital.

Since options we trade have a built-in stop loss, it’s best to risk the whole amount and let things play out.

At Hot Money Trader, I promise to navigate you through any type of market and come out on top.

Patience, persistence, and consistency are key.

Portfolio Update

We didn’t open a new trade this week as we let things shake out a bit before putting on any new risk.

Right now, our open positions are:

  • Vistra Energy Corp. (NYSE: VST) April 17, 2020, $25 call (VST200417C00025000)
  • Glu Mobile Inc. (NASDAQ: GLUU) June 19, 2020, $7 call (GLUU200619C00007000)

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

I plan on having a new trade for you on Monday morning.

To your wealth, freedom & options!

Joshua M. Belanger

P.S. If you would like to sign up for text message alerts (SMS), here's how:

To receive SMS messages via text, text Hot Money Trader to 1-773-770-4377

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%