When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (SDS) - BUY
BUY the 2X ProShares Ultra Short S&P 500 (SDS) at $32.49 or best
Opening Trade
4-1-2020
Portfolio weighting: 10%
Number of Shares = 305
The word is that the weekly jobless claims could top 9 million Thursday morning at 8:30 AM EST. This is truly a number of Biblical proportions, and I doubt the market will go up on that news.
Given that I believe that the number of US Corona cases in the US could soar from 190,000 today to well over 1 million in the coming weeks I believe a shot on the short side here is justified, at least on a short-term view. Deaths will skyrocket.
We are about to see a parade of the worst economic numbers in history. How will the market react? Not good, not good.
This position also has the advantage in that it hedges our existing long positions in the (VXX) puts, our short volatility positions.
I am therefore buying the ProShares Ultra Short S&P 500 (SDS) at $32.49 or best. This is a leveraged 2X ETF, meaning that it will rise at twice the rate than the (SPY) falls.
Don’t pay more than $33.00 or you’ll be chasing.
This is a bet that the S&P 500 will fall.
Here is the specific trade you need to execute this position:
Buy 305 X (SDS) at………….………………………….……$32.49
Net Cost:………………………….………..………….….....$9,909.45
dollar cost = (305 X $32.49) = $9,909.45
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
