I love a nice pullback. Lord Trump knows we waited long enough but our decision to stick with our Dow Futures (/YM) shorts over the weekend was a good one. Even if you aren't a Member and didn't get to see our weekly Live Trading Webinar, we still gave that trade idea away FOR FREE in Thursday morning's post – so don't complain if you missed it.
We also had our Oil Short (/CL) at $53.50 and those were good for $1,000 per contract as oil hit $52.50 in yesterday's dip. This morning, we flipped long on Natural Gas (/NG) as the Dollar fell below 100 to prop up the markets, which might give a boost to commodities and the Northeast will be cooling off for the next two weeks but it's just a quick trade as global warming continues to spoil Winter, overall.
By the way, we don't only trade Futures at Phil's Stock World or the name wouldn't make any sense. We trade stocks and options but those are more conservative and relatively boring – so they don't make the headlines on a daily basis. In fact, our Long-Term Portfolio, despite yesterday's pullback, has 54 stock and option positions and is up over 145% in 3 years and we just added 2 positions yesterday as a few bargains presented themselves (see our Top Trade Alert).
This morning, we are looking to add to our Teva (TEVA) position, as we feel the sell-off is overdone (see notes in Member Chat). We will probably add it to our Options Opportunity Portfolio as well and that's a much more aggressive portfolio that has gained almost 150% since it's inception on 8/8/15 and, in fact, GAINED yesterday as our hedged kicked in to offset the drop.
So let's talk about hedging. It's one thing to get trade ideas from this service or that but if you don't incorporate those trades into a BALANCED and HEDGED portfolio, your fate is tied to the market. For the last 8 years (the Obama years), that has been a good thing but now it's the Trump Error