June 19, 2017
Markets DO go up, down and sideways…and when they go sideways, if you have been buying options, the waiting can wear your psyche out (and your wallet)…But sooner or later, all markets also DO MOVE…and I totally, absolutely, and loudly will say, “That is where Eurodollars are now. They ARE about to move.”
Obviously, this is just my opinion…and I have been saying the same thing since we started rallying off the lows back in late March (about 3 months ago), but that does not deter me from my conviction that Eurodollars ARE in a downtrend…as well as my belief that the downtrend actually resumed about a month ago now with a final “spike” and reversal on May 18th…AND that this market is about to shift to a higher gear on the downside.
For quite some time I’ve also been resolutely bullish on the Stock Market and have continued to expect something of an upside explosion there…not just the steady upward grind we’ve seen for months…and I truly believe, as is indicated below, that a “lift off” is actually underway…RIGHT NOW…And if this IS what is happening, as can be seen on the charts following, it should finally push the Eurodollars into what I believe will be a relatively straight down 50 to 100 point collapse.
And so I continue to recommend buying puts…
If something like this IS happening in this age old economic barometer of the future, it IS suggesting that the markets are going to be “surprised” by some STRONG economic numbers in the very near future…And believe me, NOBODY on the Fed is going to just sit there and ignore them…They WILL be COMPELLED to act more aggressively…and you can be certain it WON’T be the first time they have had to ramp up their process of raising rates to stay ahead of an overheating (or soon to be) economy.
I AM EXTREMELY CONFIDENT THE SEPTEMBER OPTIONS, WHICH STILL HAVE THREE MONTHS OF TIME, ARE GOING TO COME THROUGH FOR US…BUT IT STILL ABSOLUTELY MAKE SENSE TO ADD TO POSITIONS HERE, USING THIS MARCH 9837 PUT…PART OF THIS GAME IS JUST STAYING WITH IT…AND KNOWING THAT NO MARKET GOES SIDEWAYS FOREVER.
DO something with this. RATES ARE ON THEIR WAY UP. THIS IS STILL MORE LEVERAGE THAN I HAVE EVER SEEN IN THIS BUSINESS. THIS TRADE IS FAR FROM OVER.
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