$5,000 Thursday – Down We Go Again!

Wheeee, this is fun! 

We talked about how manipulated the market is yesterday morning and, in our Live Trading Webinar in the afternoon (1-3pm Wednesdays) we decided on the following Futures positions:

Shorting /ES at 3,100 and long /CL at $46.90.

3,100 is, of course, the strong bounce line on the S&P 500 (/ES) Futures that we drew for you in our Morning Report and we did go a bit over but we decided to stick with it because yesterday's rapid move higher was just silly as nothing has really changed.  On the other hand, we went long on Oil (/CL) Futures because something was about to change as we expected OPEC to announce production cuts.  And why did we think that?  BECAUSE WE KNOW HOW TO READ THE NEWS!  Trading is not that hard folks – we just read, think and trade…

As you can see from our /ES position, we're already up $5,720 on 2 contracts and we'll put a stop at $5,000 to lock in those gains or, once we fall below 3,050 on /ES – that becomes the stop with a goal of 3,020.  That's over $30,000 in Futures gains since the market began turning down, making a lovely bonus hedge to our portfolios.  That's why we keep shorting the market – it's not so much we are uber-bearish – it's just that we have plenty of long positions so, to BALANCE the portfolio, we prefer to look for things that profit when the market turns down.  OIl (/CL) is an exception as it's a news-driven trade. 

 Oil is surprisingly still at $46.90, I suppose because virus fears are back this morning (yes, it's getting worse but I'm bored talking about it now that everyone else is) DESPITE the FACT that OPEC just annnounced a MASSIVE 1.5Mb/d production cut, so there's still time to join us in the most obvious bet of the week!

"We now convene at a time when the outbreak of COVID-19 has had a **pronounced** adverse impact on economic and oil demand forecasts in 2020, particularly in the first and second quarters" – OPEC President Manuel Fernandez

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