Which Way Wednesday – Waiting on Yellen and Brexit

What a boring week so far.  

As you can see from the UK's FTSE chart, we are just squeezing into tomorrow's Brexit decision and it's the same in all the World's markets as we await the decision of British voters whether they will leave the sinking ship that is the European Union or whether they will risk it striking out on their own – a tough call given the very turbulent economic waters the Global Economy is in at the moment

This morning, Credit Suisse (CS) becomes the umpteenth Bankster to issue a dire warning of the potential consequences of a Brexit, predicting 2,000 on the S&P if the Brexit goes through.  Of course, we're only at 2,088 so -4% doesn't seem all that dire to me and their target is 2,150 without the Brexit so +/- 4% puts them right in-line with our Big Chart prediction – and we didn't need no stinkin' Brexit to hit our numbers!  

Speaking of numbers, our Options Opportunity Portfolio exploded, jumping $13,626 (13.6%) this week as our ship came in on TLT (we were short), USO (long), FCX (long), TGT (long), UNG (long), AAPL (long), HOV (long), LL (long), TASR (long) and UCO (long).  While this was going on our hedges (TZA, SQQQ, SJB) did not suffer much damage so it's been all good this week and we are now miles ahead of our goal of making 5% per month as we began this portfolio Aug 8th of last year.  

Of course it's easy come, easy go in the markets but I think we're well-balanced enough to let it ride as we're well-hedged for the Brexit and it doesn't seem too likely it will happen and, if not, we'll be loving our longs – none of which seem too overbought.  UNG, of course, is our Trade of the Year and we made a very heavy play in February, playing for a July high of $8 – that trade alone is going to return $10,000 on a $1,700 bet for an $8,300 profit (488%) since our February 26th entry.  


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