What a busy, but a profitable week!
We’re set to snap a two-week losing streak in the markets despite today’s weakness.
We've seen a massive 4-day rally which provided the Dow Jones Industrial Average its first 1,000 point move in 2020.
We received a stronger than expected job number with 225,000 jobs added in January.
It doesn’t look like we are in the clear though, the market is still cautious.
The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), at 15.50, which is above our key level of 15.
When the S&P 500 closed at a new all-time high on January 22nd, the CBOE Market Volatility Index (VIX) was at 12.91.
One reason why the market continues to be cautious here is the footage is being leaked out from the city of Wuhan in China.
The footage that has been leaked is showing a more grim-looking city and a higher death count form coronavirus than being reported by the Chinese government.
It’s concerning, but we’ve seen this before, and we will see it again.
Stick to our system - come out on top like we did this week.
Portfolio Update
On Monday, we bought to open Clovis Oncology (NASDAQ: CLVS) March 20, 2020, $10 call up to $0.85 per contract or better, for the day.
On Wednesday, you sold to close Clovis Oncology (NASDAQ: CLVS) March 20, 2020, $10 call for a triple-digit gain of 100%!
We also sold to close Melco Resorts & Entertainment Limited (NASDAQ: MLCO) Feb. 21, 2020, $22 call for a loss.
On Thursday, you sold to close Zynga Inc (NYSE: ZNGA) June 19, 2020, $6 call for a double-digit gain of 66%!
Right now we’re holding:
Vistra Energy Corp. (NYSE: VST) April 17, 2020, $25 call
After-Action Report
Date: Feb. 3, 2020
Outcome: 100% gain.
Notes: Our HMT system was ahead of the pop again and we executed flawlessly. We sold into strength and locked in our profits.
Date: Jan. 27, 2020
Outcome: 66% gain.
Notes: Our HMT system was ahead of the pop again and we executed flawlessly. It’s not part of our approach to get into a position ahead of earnings. However, with our signal flagging activity in June, it provided us time for it to play out.
Date: Jan. 27, 2020
Outcome: 46% loss.
Notes: Our HMT system as ahead of the pop again, but the profit window closed on us way too fast. I hate having a winning trade turn into a loser, but that’s part of the process. Despite closing this for a loss, we did execute this flawlessly by managing our position. Most fall into hope and pray, but protected our capital and now we can move onto the next money-maker.
As always, keep sending your questions and feedback to [email protected]
My team and I will have a new trade for you on Monday.