Great advice considering they are up 30% already this year, NUGT is up 120% this year. Aren't these the same guys who said gold is going below $1000? They never tell you to buy at bottoms, just last week they said JCP was going to $1 and to sell the pop at $7.25 "if it even gets there". Did they tell you to buy it at $5, no. The only thing anyone on CNBC ever tells you is to buy at highs or sell at all time lows. Gold is shooting higher for one reason, the ECB is going to do a huge QE program as our Fed exits QE.
The Fed had much bigger fish to fry this week, namely buying bonds yesterday and today. No one wants our bonds so the Fed has to buy them or create fear to get money to move in to bonds. Today they sacrificed stocks to fund the purchase of 30 year bonds at the auction. No one on the planet has the cash to buy our debt, we issue close to $100 billion a month in new debt. In my opinion, the stock market is just a pool of money to draw from to support bond/credit markets.
Of course, why would they do anything different today than before? IWM was strong today I thought, AMZN was too. They will take this market where they need it to be tomorrow to cash in the most money from weekly options. This bull market began in earnest with the introduction of weekly options, it is a huge profit generator and of course promotes even more risk taking.
Buying calls before the $:15 cut off would be a good idea. Throw a few $'s at weekly calls that expire tomorrow. I doubt this continues for weekly expiration. They will try to wipe out in the money calls tomorrow. If you expect a huge move either way then buy both a call and a put. If you make 5x on one and the other goes to zero you are still way ahead.
Dumped just about all my puts, I am only keeping a few IWM weekly puts I bought this morning. I'm 90% in cash right now. Probably should buy some calls at the close, pretty sure they will push the market up tomorrow but in case they don't I'll hold a few puts. I'm up 80% today in options, took my money and ran. I just wish I had GOOD or PCLN puts!
GOOG and PCLN puts both made you 10 times your money today. Imagine that, a 2% move in GOOG makes you 10 times your money, 2.7% in PCLN is 10 times your money. Both of these stocks have moved to record highs very quickly, just a few months ago they were both well below $1000. If you look out to next week no one is buying puts, hardly no open interest.
No need to trade shares, the Fed is buying futures and the ECB is pushing up the DAX. Since when do shares need to trade for stocks to go up? This is a market run by central banks, not actual investors who buy and sell stocks. The market doesn't set prices, central banks do, just look at bond markets. They set the price/yield for bonds, not legitimate market forces. They are the only buyers for bonds, no different for stocks. Everything that comes up for sale gets bought no matter what the price is, they just print up more money.
Yes, then we sold real estate to them and promptly tanked it so they lost all their money. Then their economy went in to recession and they started printing money just temporarily of course until the economy recovers. Well, here we are over 20 years later and they are still doing QE, have zero rates and debt 3x GDP. Care to guess how the US will line up?
The Fed had to step in again to prevent disaster, today it came at 11AM and of course they pushed hard at the close. They are getting more desperate every day, it is costing a fortune to keep the market at these levels. Look at the Momo stocks like TSLA and NFLX, mucho dinero coughed up to sellers today. The indexes aren't show the underlying damage.
What else would you expect on weak data? Still no jobs, everything status quo, the Fed will print more, they love it!
This game of manipulating the stock market every day at 10AM and again in to the close is getting a little old after 5 years, wouldn't you agree? What has it done for creating jobs? Nothing. Pigs just getting fatter and everyone in a suit on CNBC is a market genius now because the Fed coddles Wall Street. I'd like to see this market go up with no QE money and no interventions by any central banks in stocks, bonds or currencies and watch how fast this Ponzi collapses!
No snow for many resorts in the west until just a few weeks ago. I'm sure the snow was good for anyone selling shovels, salt or snow plows too.