Talk of "trade wars," has been moving global markets for the past month, and it will likely reach a crescendo next Friday. It is the last day of the G-20 summit in Buenos Aires, and of the highly anticipated meeting between President Trump and Chinese Premier Xi Jinping. The entire week should be a roller coaster of news, rumors, leaks, posturing, and not the least, market volatility.
Our choices are to (1) continue trading the system trades, trusting in their objectivity, and/or (2) overweight on puts (& VXX calls) pursuant to a compellingly bearish Elliott Wave pattern and the closest we have been to a Wave 3 of 3 down since 2008, or, (3) sit it all out and wait for the dust to settle.
The problem with this (3) is something called "opportunity cost." When it comes to trading stocks and options, if you are not trading, you are not winning; and if you are not winning, you are losing.
The first two alternatives are in sync as the 15 Sell Signals generated on November 12 are providing adequate coverage on the Short side. Additionally, we have since had a roll-over VXX Buy (Nov 14) and an LUV Sell (Nov 19) to add to the collection of short positions.
In this weak market there has not been enough counter-trend up price bars to set up new Sell Signals, so be patient and know that moves against our massively short portfolio will only set up a fresh slew of new sell signals. In the shorter-term premium service, I am starting to look at 120 minute and 60 minute bars for any especially attractive add-on trades.
Blue Line Standard and Premium Services
In answer to many questions over the past two weeks:
The Standard Service manages the Blue Line Trading System and includes daily market commentary, posted on-line near the close of trading each day and sent out via email at 5:00 pm EST: $59/monthly or $599/annual
The Premium Service includes the Standard Service, along with additional shorter-term trades and real time intraday Alerts as needed per market conditions: $99/monthly or $999/annual
Current Subscribers: If you want to make any changes in your subscription, either to upgrade to premium, upgrade to annual, or both, email us:
If you are not a current subscriber (which beats me, because how are you reading this?) here are the direct links:
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