Tuesday Update: Special Situations Up Front

The opportunities ahead this year are going to be especially notable in the Special Situations portfolio. We are seeing a phenomenon in bitcoin and derivatively in certain bitcoin and cryptocurrency centric stocks that hasn't been seen since the dot.com run in the late 90's and the small cap biotech boom in the mid-2000's.  

Our tactical focus here has been almost exclusively trading options on trending stocks under the umbrella of making in the stock market. But if it walks like a boom, trades like a boom and is soaring like a boom, you can bet we are on the cusp of a booming new sector.  If so, it is imperative to seize the moment and not let this opportunity pass. If the sector implodes, there are shorts and puts we can buy to ride it down. But if bitcoin (and similarly situated cyber-coins) is for real, the ride up has just begun. 

Our option system is on auto-mode and there are only a few rules to implement the system. The Special Situation portfolio is a little different and I'll be making some adjustments in our entry and exit strategies to accommodate the expected volatility in both directions. This is exciting for me, something you only see about once a decade. How many decades are left?  Doesn't matter, this one is here and now is the time to seize the opportunity and get into this market.

Buy don't go blindly. Keep your eyes on the Special Situation portfolio at the bottom of the Intermediate Term portfolio below, it will catch most of the run up, and most of the run down should it decide to fall apart one day. For now, patterns are setting up for a new leg up. We will be a little late in GBTC and the next round of OSTK calls, that's how trend trading works, but the ride will be worth the wait.  MGTI is still on a Buy and if not already in your portfolio should be bought now.