Croker-Rhyne Co., Inc.

Main Page  |   Philosophy  |  Current Recommendations  |  Newsletter Archives
Contact Us

 

January 11, 2017

The following comment, from a high class “strategist” from a major house, is the epitome of the type of know-nothing talking head opinions that are all over the place today regarding stocks…

Per the following three charts…wherein the NASDAQ traded a new all time high yesterday, and both the S&P and Dow traded new all time highs four days ago, to suggest that there is “indecisiveness” or that the market “can’t seem to build on a rally”, is, I believe, just STUPID…and importantly, I also know that this genius’ opinion is shared by herds of other Wall Street analysts.

As I have written too many times to count, the stock market DOES NOT top out when there is ANY noticeable degree of doubt being expressed by the internet yakheads and all the supposed experts from the banks and brokerage houses…And while many of them have obviously had this rally shoved down their bearish throats, and been forced to admit that, “Hey, it looks like the market is going up”, there is still a TON of doubt and “caution” being expressed everywhere…And as I keep reiterating…
NOTHING REALLY BIG HAS HAPPENED YET. I THINK THE DOW COULD GO UP 20% THIS YEAR…SO FAR WE ARE NOT EVEN UP A FULL 1%.

1-11-17dowdaily.png

1-11-17s&p.png

1-11-17nasdaq.png

To be clear…ALL of those brisk rallies occurred precisely when Wall Street was saying, “NO!NO!NO!”, And I maintain the majority of them are, here and now, “optimistic about the future, but CAUTIOUS at current levels”, and “anticipating a correction before the rally continues”. In other words, the same nonsense they were spouting throughout 2016.

The truth is, even though we have had a relatively strong rally since the election, we have yet to see the sort of dynamic upsurge that becomes THE story of the nightly news…So far, the first trading session after the election produced a 371 point up day, but since then we have yet to even have a 300 point up day…And I therefore firmly believe we are now on the cusp of seeing STRINGS of 300-500 point up days (or bigger) as all those people who screamed “Sell!” FOUR times in 2016…in January due to China, then their “Sell in May and go away”, then Brexit and then before the election…all find themselves chasing and buying a truly runaway stock market that they do not YET own again.

I CONTINUE TO LOOK FOR AN ABSOLUTE UPSIDE EXPLOSION IN STOCKS…AND AN EQUALLY SHARP SELLOFF IN EURODOLLARS AS INTEREST RATES RISE FAR MORE QUICKLY THAN ALL THOSE SAME WRONG WAY “ANALYSTS” COULD EVER THINK POSSIBLE...

I AM STILL AGGRESSIVELY BUYING PUTS IN EURODOLLARS.

I AM PERSONALLY ADDING TO WHAT I ALREADY OWN, USING THE SEPTEMBER CONTRACT.

And as I keep repeating, Just 2 months ago, NO ONE at the Fed ever dreamed they’d be dealing with an exploding stock market and a Presidential & Congressional combo that wants to massively ramp up an already solid economy in a manner that we CERTAINLY have not seen in decades…or my lifetime really…And when you pair all that with STILL having the lowest rates modern history, I think it is beyond obvious that  Fed will NOW has some SERIOUS catching up to do…which is one of the reasons why RATES ARE NOW ON THEIR WAY HIGHER…MEANING EURODOLLARS ARE HEADING LOWER.

1-11-17dowvssept17ed.png

Here’s a bigger picture perspective of the September 2017 Eurodollar…

1-11-17sept17edweekly.png

Here is the option I am STRONGLY recommending here…

1-11-17septEd9850put.png

And yes, I am looking for a BIG hit here…And yes, I want to be ALL OVER this trade as I have never seen anything like it in terms of time and leverage before…With 250 days until expiration, I do not think these are, at all, “pie-in-the-sky” numbers…And I may be dead, dead wrong…which could mean losing every dime you put on this trade, but I DO THINK WHAT I HAVE DRAWN HERE IS ABSOLUTELY GOING TO HAPPEN.

If you think the case I keep presenting makes sense, and you have the risk capital and the risk temperament, I urge you to pick up the phone and talk to me…Most of my energy goes into research and writing…and I often do not have the time nor energy to call each of you.

And if you are already on this, I also urge you to consider using this dirt cheap (in my opinion) September option to add more size, time and leverage to your position. I truly believe this ride has barely gotten started…that NOTHING really has happened yet.

Thanks,

Bill

866-578-1001
770-425-7245

All option prices in this newsletter include all fees and commissions.

The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Eurodollars

Main Page   |  Philosophy  |  Current Recommendations  |  Newsletter Archives 
Contact Us