Santa Rally Has The Green Light

December 6, 2019

With only a few weeks until Christmas, we’re setting up for a Santa Claus rally.

We’re seeing all three major indexes rebound after a little turbulence earlier in the week.

And investors are upbeat after hiring surged in November, adding 266,000 new jobs.

Buckle up, though, because next week is going to be action-packed with headlines.

We have the Fed meeting, the Saudi Aramco IPO, the U.K. elections and the House Judiciary hearings.

Looking at volatility, we see the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), at 13.50.

This below our key level at 15, which should mean investors are bullish…
But since we are still near that key level on today’s rally, it shows that the market is a little cautious going into next week.

If you missed it, last Friday we sent you an email with your new bonus report called 3 Strategies to Make Your First Million.

Check it out here.

It’s a summary of my latest talk at the TradersEXPO in Las Vegas.

After you read it, we’d love to hear your thoughts and feedback — feel free to send them my way at [email protected].

And if you didn’t hear, I’ll be speaking at the MoneyShow in Orlando, Florida, on Feb. 8, 2020.

While there, I’ll discuss both one critical mistake and two strategies to lock in your gains.

I hope to see you there!

Now let’s talk shop...

Portfolio Update

On Tuesday, we bought to open Bank of America Corp. (NYSE: BAC) Dec. 13, 2019, $33.50 call up to $0.18 per contract.

On Wednesday, you sold to close your Bank of America Corp. (NYSE: BAC) Dec. 13, 2019, $33.50 call at $0.27 per contract.

On Friday, we bought to open Editas Medicine, Inc. (NASDAQ: EDIT) Jan. 3, 2020, $45 call up to $0.35 per contract.

Right now we’re holding:

  • Kraft Heinz Co (NASDAQ: KHC) December 13, 2019, $34 call
  • Evolent Health, Inc. (NYSE: EVH) December 20, 2019, $12.50 call
  • Editas Medicine, Inc. (NASDAQ: EDIT) Jan. 3, 2020, $45 call

After-Action Report

Bank of America Corp. (NYSE: BAC) Dec. 13, 2019, $33.50 call

Date: December 3, 2019
Reason: Our Hot Money Tracker spotted short-term bullish positioning in the call options.
Outcome: 50% gain!
Improvements: We executed exactly the way we should have. Took our profits, put a winner on the board and moved onto a new opportunity

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%