Tumbling Tuesday – China Trade Data Adds to the Bear Case

Another $3,000 winner for you!  

Just like we did last Wednesday in the morning post, yesterday we laid our a Futures trading plan that has led to a $3,000 per contract gain on the Russell (/TF) Futures along with similar gains on the S&P (/ES), Nasdaq (/NQ) and Dow (/YM) all provided to you FOR FREE, right in the morning post, which was even published on Seeking Alpha (thanks to alert editors!) at 9:08am – plenty of time to play before the market opened and we started dropping.  Merry Christmas and Happy Chanukah to all of our fans!  

We also reiterated that fabulous SDS hedge that once again is paying off huge and we'll be discussing that, along with our Futures trading, in this afternoon's FREE Live Trading Webinar at 1pm, EST.  We hold these Webinars once a week and usually they are for our Members only but once a month we like to invite everyone in for a look and, who knows, maybe you'll realize it is worth learning what we have to teach you about Options, Futures, Portfolio Management and Trading Techniques.   

As you probably know, we are currently "Cashy and Cautious" in the markets and our main portfolios (Long and Short-Term) are well-balanced, while our Butterfly Portfolio is self-hedged – so we don't have to worry about that one.  Our most bullish portfolio is our Options Opportunity Portfolio, which you can join over at Seeking Alpha, and that one has taken a hit this month – but nothing we didn't expect as we added many bullish positions and our hedges have yet to kick in. 

That makes it a great time to add new positions like, for example, in the Options Opportunity Portfolio we have a simple hedge using the Nasdaq Ultra-Short (SQQQ), where the March $15 calls are now $3.50 so we bought 30 of those ($10,500) and sold 30 of the March $20 calls, now $1.50 ($4,500) for net $2 ($6,000) on the $5 ($15,000) spread.  That gives us a $9,000 hedge in our $100,000 portfolio should the Nasdaq turn south and, best of all, SQQQ is already at $17.78, so the hedge starts out $2.78 in the money ($8,340) and we can only lose if the Nasdaq…
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