Is it safe?
Is what safe?
Is it safe?
I don’t know what you mean. I can’t tell you something’s safe or not, unless I know specifically what you’re talking about.
Is it safe?
Tell me what the “it” refers to.
Is it safe?
Yes, it’s safe, it’s very safe, it’s so safe you wouldn’t believe it.
Is it safe?
No. It’s not safe, it’s… very dangerous, be careful.
One could only wish we could torture the MSM pundits the way the evil dentist tortured Dustin Hoffman in Marathon Man – these guys cannot give us a straight answer and, frankly, we’re not even sure what the question is anymore. Is it safe to buy bonds? Is it safe to buy stocks? Is our currency safe? Are commodities safe?
All this uncertainty is certainly boosting gold and, although I am no fan of gold speculation, we did take a gold hedge in last Tuesday’s Alert to Members and on Wednesday our market hedge was a 500% hedge on the Russell that goes 100% in the money right about 730. Monday’s upside Alert play was a 1,000% payoff on FAS that’s already all in the money – it’s a crazy market when your longs and your shorts work at the same time!
That’s the sort of thing that gave us the confidence to restart the “$10,000 to $50,000 by Jan 21st” virtual portfolio as we were halfway to goal at $26,000 when we cashed out in early October. We didn’t like the market then for directional plays and we still don’t but now we’re taking the opportunity to practice our short-term trading techniques in this choppy market. As you can see from David Fry’s Nasdaq chart above, we’re in a critical zone and the chips are literally flying every which way – our job is just to reach in and grab a few.
Yesterday we focused on the DIA (always a favorite) $112 calls, which opened at .94 and we took 20 at the open and stopped out with a quick .10 loss ($200) just 10 minutes later as the Dow failed to hold 11,000. We took a re-load with 30 at .75 at 11:12, stuck out the dip to .70 and cashed back out at $1.05, for a very nice $900 gain on our second attempt. We…
