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) – SELL-STOP LOSS
SELL the 2X ProShares UltraShort S&P 500 (SDS) at $19.80 or best
Closing Trade – NOT FOR NEW SUBSCRIBERS
6-3-2020
Portfolio weighting: 20% down to 10%
Number of Shares = 320
I added this position six weeks ago as a hedge so I could go hog wild on the long side in a soaring market. This short also enabled me to be far more aggressive with my shorts in the bond market.
It worked, and as a result, we have added an unprecedented performance of 27% to our P&L. We are now up 10.60% in 2020, compared to a Dow Average that is down 9.5%.
However, the market has gone so far, and our stock longs and bond shorts are so much in-the-money, to continue with this position would take me to a net short position.
The (SDS) did its job and it’s time to say farewell.
I am therefore selling the ProShares UltraShort S&P 500 (SDS) at $19.80 or best. This is a leveraged 2X ETF, meaning that it will rise at twice the rate that the (SPY) falls.
Here is the specific trade you need to exit this position:
SELL 320 X (SDS) at………….………………………….……$19.80
Net PROCEEDS:………………………….…………….….....$6,336
dollar cost = 320 X ($31.15 - $19.80) = $3,632
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
