Tired Bull vs. Scared Bear Showdown

January 25, 2020

I’d like to say we’re seeing a good old-fashioned bull and bear showdown, but bears in this market are nearly extinct.

All three major indices are cooling off in today’s session as energy, healthcare, and financials are leading the S&P 500 lower today.

Next week, we have some important market data coming out with GDP and the Fed meeting.

We’re also starting to get int the thick of earnings season, which has been upbeat thus far.

The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), at 15, which is right at our key level we monitor.

This indicates increased investor concern as we look very stretched in this continued melt-up.

It feels like we are setting up for a shakeout of weak hands in the market, so buckle up!

That is why in our Wealthy Tech Investor portfolio, which was up to 1,161% in 2019, we’ve closed four of our best long equity positions to lock in profits.

While it’s good to try to understand the market and where it may be going, the only thing that matters is focusing on making money, not our opinion.

Understanding and managing risk is the key to making and keeping wealth.

The power of options and Hot Money allows us to stay nimble and capture large gains, quickly.

Stick to our system - come out on top like we did this week!

Portfolio Update

On Tuesday, we bought to open Taiwan Semiconductor (NYSE: TSM) Jan. 24, 2020, $58.50 call up to $0.75 per contract or better.

60 minutes later, you sold to close Taiwan Semiconductor (NYSE: TSM) Jan. 24, 2020, $58.50 call at $0.90 per contract.

Congratulations on your super quick 20% gains!

These gains are were too quick, but that’s the power of Hot Money.

Right now we’re holding:

  • Vistra Energy Corp. (NYSE: VST) April 17, 2020, $25 call

After-Action Report

Taiwan Semiconductor (NYSE: TSM) Jan. 24, 2020, $58.50 call

Date: Jan. 21, 2020
Reason: Our system flagged short-term under-market sentiment shift that could send shares soaring higher by today’s expiration.
Outcome: Exit at a 20% gain.
Notes: We executed perfectly. When we have trades that generate profits that quickly, we have to take them or they will turn into a loser.

Your Questions, Answered!

When is it too late to get in on one of the Hot Money trades? Should I just wait until the next one? -Ryan, Florida

Here’s how to best handle that.

Your goal should always be to get a better fill price than what is listed on the Hot Money Trader buy alert. If the price of the option goes over our buy-up-to price, it’s best to wait until the next trade.

And know that we always aim to accurately reflect the price at which Hot Money Traders are getting their fills in our official prices.

I aim to send you a trade every Monday morning, so if you missed out, there’s more opportunity just around the corner.

In instances like this week with those super quick 20% gains in Taiwan Semiconductor (NYSE: TSM) Jan. 24, 2020, $58.50 calls, we know that some readers weren’t able to participate.

When this happens, we will try to provide a bonus trade just like we’re doing Tuesday morning (January 28, 2020).

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

My team and I will have a new trade for you Monday and Tuesday 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%