Yesterday certainly went according to our plan!
The futures bets I mentioned in the morning post made a ton of money as we hit our targets to the penny and both the Dow and Russell short contracts had amazing returns (note huge bearish engulfing candle we played perfectly on the Fizbozachi chart). We have to thank our man Cramer for a huge score yesterday on AMZN, which I also mentioned in the morning post. We went with our plan in Member Chat yesterday, selecting to sell the naked Dec $145 calls for $5 right out of the gate and later we collected $3 from Cramerites for the $150 calls.
Both closed yesterday with roughly 50% gains for us – probably not so good for the BUYBUYBUYers though. Yesterday Cramer attacked our position on SRS and told his minions to IGNORE the naysayers on Commercial Real Estate and buy the IYR. Unfortuntely, IYR is not a marquis name so it didn’t get a lot of participation on his call but we will certainly be back in more SRS if it hits $8 again.
The Jobs Report is at 8:30 and we’re really not sure which way that number will come out (we were sure but the White House confused us by pre-announcing yesterday that the unemployment rate “might tick upward” despite what we see as favorable seasonal adjustments – see yesterday’s post as well as Barry’s excellent outlook). Now expectations are way low so even a pretty poor result can be met with some relief and we already had a nice sell-off yesterday so we’re not looking to be greedy as we are ready to protect our now very short portfolio from a possible bounce but still hoping the jobs data is the nail in the coffin for the bulls this week.
Not much happened overnight as Asian markets traded fairly flat on no particular news. Of course fairly flat is an odd way to describe a Nikkei that was jammed over 10,000 right at the close but that was nothing compared to the Hang Seng which “only” lost 55 points after dropping 320 until lunch when suddenly they had to BUYBUYBUY to get back to the 22,500 line – which, sadly, they failed to hold by 2 points. Take a look at that 5-day chart and think about how much money you can make just buying into the HSI right after lunch every day (or you can just show up and buy before lunch, come back before the close and sell). Anyone wishing to take a…
