Here’s How We Navigate Ferocious Global Repricing

February 28, 2020

There’s no sugarcoating this, it was an ugly week!

In fact, this is the worst month since 2009.

Over the past decade, investors have gotten used to markets going straight up.

Like the 2008 financial crises bringing down global markets, coronavirus is doing the same.

Global markets have dropped into correction territory, which is any pullback 10% or greater, but not exceeding 20%.

The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), is at 47, which spiked above our key level of 15.

99% of market participants are feeling losses right now, even those who may have been short.

Giving back some of those gains isn’t fun, but it’s going to happen.

This doesn't ease the pain investors and traders feel right now, but level heads will prevail.

I assure you that you’re in the best hands to navigate difficult markets such as the one we are in currently.

I started on the floor of the Chicago Mercantile Exchange working up to managing a trading desk of 500 million in assets.

So I’m no fly-by-night guru.

This pullback is going to set up one of the largest rallies in history.

Market winds can shift, but we are nimble enough to adapt and continue to thrive and take home winners.

Once the dust settles, this market allows us to be in and out of trades faster because markets are buzzing.

You can expect a lot of fast-moving trades in the coming weeks.

With that said — I’d like to review all our open positions…

Portfolio Update

On Tuesday, buy-to-open Twitter, Inc. (NYSE: TWTR) Mar. 6, 2020, $36.50 call up to $1.26 per contract or better, for the day.

Right now we’re holding:

  • Vistra Energy Corp. (NYSE: VST) April 17, 2020, $25 call (VST200417C00025000)
  • Glu Mobile Inc. (NASDAQ: GLUU) June 19, 2020, $7 call (GLUU200619C00007000)
  • Twitter, Inc. (NYSE: TWTR) Mar. 6, 2020, $36.50 call (TWTR200306C00036000)

Despite this overall market correction, our Hot Money Trades are higher for 2020 with 5 winners and 3 losses.

If we get a snapback rally early next week, we can likely salvage our Twitter calls. Our other two trades do have a good amount of time left to work out in our favor.

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

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

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%