Would it be too early to call the year yet?
"As goes January, so goes the market" is something a lot of traders believe and we're off to a rotten start, for sure but mostly we just gave back the gains I thought we never should have gotten last week anyway – so NOW we're back to 2,000 on the S&P (ES on the Futures), we'll see what's real and what's not.
We went long on ES at the 2,000 line and TF (Russell Futures) at 1,100 and we made a big call yesterday in our Live Member Chat Room, to cash in those SQQQ March $15 calls ($5.44), from that spread I mentioned in yesterday's post and that flipped us BULLISH into the close, where we were rewarded by the "stick save" (so far).
That's a really great feature of using spreads to hedge like we do because we can flip our whole portfolio from bearish to bullish by simply taking the profit ($5,220 in this case) of our short leg off the table and now we've gone from slightly bearish to slightly bullish and all we have to do to get bearish again is buy another bear leg. Hopefully, we won't need to and SQQQ will top out at $20 and the short calls will expire worthless and we'll make another $5,550 on that leg.
Of course, as I mentioned yesterday, we have huge short positions on Amazon (AMZN) and Netflix (NFLX) so, to some extent, we were locking in some of our gains by flipping bullish on the Nasdaq to cover a possible bounce in those two. I don't think either one of them are done going down but Apple (AAPL) looks like it's going to hold $100 and AAPL counts WAY more in the Nasdaq than those overpriced jokes.
We were hoping AAPL would go a bit lower as we only have one bull call spread in our Long-Term Portfolio. Our plan was to sell some short 2018 puts when AAPL got down to $100 – preferably the $95 puts for $15, which would give us a very comfortable…