It’s been another week of knee-jerk market reactions.
For the last six weeks, we’ve seen overall volume continue to shrink.
That would indicate a lack of participation amongst professionals, leaving the bots in control.
These recent moves are still led by market algorithmic trading programs buying and selling because of a tweet or headline.
Most of these algorithmic trading programs look to auto hedge a basket of stocks — which is why you see the market zip lower and then higher.
These moves have been frustrating for us.
We get the move in our direction to only see it reverse, hit our stop loss area and then rip back higher.
The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), continues to be around 19 — which means we expect to continue seeing these swings of 1% in either direction.
As we’ve seen, market winds can quickly shift back and forth…
And all this market shifting is creating better opportunity after it shakes the tree.
I’ve been through this before, and it’s likely our next trade on Monday will be a big win and put us back on track.
Just as we did only a few weeks ago when we got ahead of the big news in Gannett Co. Inc. (NYSE: GCI) and took home a 122% gain.
Let’s talk about our newest position for this week…
On Tuesday, we bought to open the CNH Industrial NV (NYSE: CNHI) September 20, 2019, $10 calls up to $0.25 per contract.
Right now, we’re holding CNH Industrial NV (NYSE: CNHI) September 20, 2019, $10 calls.
I know it’s been a frustrating week, so if you need to vent your frustration or have a question, send it to [email protected]
My team and I will have a new trade this Monday.
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%