The big excitement last night was another gasoline (/RB) pipeline explosion in Alabama, which sent prices flying more than 10% higher overnight and now around $1.55 from $1.41 yesterday. We shorted it this morning in our Live Member Chat Room at about $1.575 so we'll see how it goes – clearly the move is overdone but those are our favorite kind of moves to bet against!
Latecomers (in Live Member Chat we shorted much earlier for better prices) were fortunate it was a slow grind down and we bounced just under the $1.55 line until 11 and then the bottom fell out hard and fast and, by 12:15, we were below our goal of $1.475 (as our original short was $1.575 and we were hoping for a 10-cent drop) on contracts that pay $420 per penny, per contract!
Futures are a really fun way to put some of that sideline cash to work and an entertaining way to day-trade the markets while you wait for your responsible, long-term positions to mature. This morning, also in our Live Member Chat Room, we went long on Natural Gas (/NG) as it tested the $2.80 line and we'll likely initiate a long on the ETF (UNG) today during our Live Trading Webinar (1pm) – possibly the last one before the Trumpocalypse.
Speaking of market turmoil in fear of insane electoral choices being made – we added another hedge yesterday to our Short-Term Portfolio because it hasn't stress-tested well enough this week to make us comfortable against a sharp correction – which is a mounting possibility.
As you can see from Dave Fry's S&P ETF (SPY) chart, we've broken significant support as we retest the September lows. If we quickly reverse back over the line TODAY, then it will be no more significant than the mid-October panic was but, if we finish the day below the line – DOOM!!! And you need to take my DOOM!!! calls seriously – just last Tuesday, I…