Oh, I have tried!
I have tried to be bullish, I have tried to get enthusiastic about this rally but I have been reviewing these picks for a few days and looking at the market, the charts, the sentiment, reading the news and studying the fundamentals and I’m OUT! Oh, I’ll be back, we’ll set up a new, aggressive $100K Portfolio next week for some fun day-trading (still keeping the conservative one for the full year) to take full advantage of this insanity but it’s going to be mainly cash through the end of the month as I do not trust this rally one bit and it will be so nice to head into the easter holiday with lots of cash on the sidelines.
We hit a perfect entry on Feb 8th in our last round and the market is up almost 9% since that day and I’m not expecting another 9% in the next 6 weeks so it’s a very good time to take a break. We were able to roll and enjoy these trades since Christmas and we will be revisiting some, maybe even keeping a few but, on the whole, I want to do what I often counsel members to do, which is follow our simple two-step process to maximizing your profits in a market rally:
- Step 1) Take Money
- Step 2) Run
There – isn’t that simple? Not much else to talk about – let’s just see if any of these suckers are worth keeping (noted in green):
AET (12/21 – $34.04, 1/9 – $32.70, 1/31 – $29.97, 3/18 – $33.24) They could not have done better for us, staying right in range and giving us 4 excellent sales but health care is passing this weekend and that’s too wild for us to stick with. Our last batch is right on target:
- Apr $33 calls sold for $2.40, now .40 – up 83%
- Apr $30 puts sold for $1.50, now .02 – up 99%
- 2012 $25/35 bull call spread at $5, now $5.40 – Keeper if we sell July $34 calls to cover at $2.35
- 2011 $22.50s at $9.10 – now $11.60 – up 27%
- Apr $27 puts sold for $1.75, now .01 – up 99%
AGNC (11/24 – $26.20, 12/21 – $27.91, 1/9 – $26.50, 1/31 – $26.69, 3/17 – $28.01) is (gasp!) a REIT. But it’s a strange one that (according to them) “Invests in agency pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a…
