Meaningless Monday – Waiting on the Fed (again)

SPY 5 MINUTE

Nothing really matters
Anyone can see
Nothing really matters

nothing really matters to me – Queen 

Is this the real life?

Is this just fantasy?  Caught in a landslide, no escape from reality?  

Yes, that's about the tone of the markets this week as we wait on the Central Banksters at the Federal Reserve to once again steer the markets off a cliff or into the stratosphere or whatever the opposite of their stated intentions – as seems to be too often the case.  We finished last week right where we began on the S&P, back just over the 1,900 line – but it's nothing to be proud of as we're still down from 2,050 (7.3%) from Jan 1st and 9.5% off our 2,100 high, last visited on the morning of Dec 2nd, when I said:

This is getting tedious

The S&P gets to 2,100 and we short ES Futures at 2,100 (with tight stops above the line) and Russell (TF) Futures below the 1,200 line and Nikkei (NKD) Futures below the 20,000 line and then, tomorrow or Friday, I'll tell you how much money we made shorting and you'll say "why do I never catch these great trade ideas" and I'll say it's because you're not patient enough to wait for the pattern to reset itself and just make the obvious play.  

Also in that 12/2 post (and you can get them by Email every morning for just $2 per day!), we noted our Short-Term Portfolio (STP) was up 213.2% and we were loaded for a bear market with our positions and, as of Friday's close, our STP was up 309.8% – a gain of $996,000 in 7 weeks – which is very good protection against a 10% market drop, even if you don't know how to play the Futures.  In fact, we even gave away an options play so our non Futures-playing readers could hedge against the downturn:

  • Sell 20 SDS March $19 puts for $1.25 ($2,500 credit) 
  • Buy 20 SDS Jan $18 calls for $1.20


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