As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Follow Up to Trade Alert - (DXJ) - Update
Sell the Wisdom Tree Japan Hedged Equity ETF at $56.79 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
4-30-2015
Number of Shares: 181
I think it is safe to say that the wind has gone out of the sales for the strong dollar trade for the time being.
So far, this has manifested itself in a monster rally in the Euro, from $1.03 to $1.12. The move in the Japanese yen so far has been muted. But this does add an extra risk to our position in the Wisdom Tree Japan Hedged Equity ETF for the time being.
Yesterday, the Bank of Japan policy committee met and decided to keep the present hyper simulative quantitative easing monetary program unchanged. The market read this as no new stimulus, and took the Nikkei Average down some 3%.
If you get a sudden, kneejerk pop in the yen, the Japanese stock market will take it on the nose. I want to be in a cash position to take advantage of such a development, rather than average down an existing position.
Don?t get me wrong. I still love Japan long term and believe it will substantially outperform the US going forward. The lesson of the last six years is that you want to own the market that is ramping up QE (Japan), not the one that is ending it (the US).
The double is still in the cards. This is just a tactical move for my short term traders.
Here is the specific trade you need to execute:
SELL 181 shares of the (DXJ) at..?$56.79
Net Profit:??..($56.79 - $55.17) = $1.62
(181 X +$1.62) = $293.22, or +0.29% for the notional $100,000 model portfolio
