Archive Category: Max Profit Alert Archive

I don’t recommend we make any new trades today. It’s been a month since I shared a detailed review of our portfolio with you. It’s time for another look at our open positions. First, let’s rip off the (psychological) Band-Aid and discuss our five “write-off” positions… As I explained in last month’s portfolio review, a handful of our positions are in deep drawdowns.

The cause of the 2008 financial crisis bear market was excess speculation in the U.S. property market — namely, house “flipping” and super sketchy mortgage lending, which then got packaged into even sketchier mortgage-backed securities. An informed person (not an expert) on the street would likely blame this bear market on excess speculation in “technology growth” stocks. Tech stocks beat most other sectors from 2009 to 2020. And then in the wake of the 2020 “coronacrash” and COVID lockdowns, technology stocks crushed the competition.

Last week, I shared why we aren’t exiting any of our open positions despite the S&P 500’s official cross into bear market territory. That still holds this week. I’ve been scanning the market for any new buying or shorting opportunities … but there are no compelling trades to make at this point in the market cycle. As such, we’ll spend this week waxing philosophical about the “typical” bear market. Spoiler alert: There is no “typical” bear market…

In a lot of ways, I’m no different than each of you. I put my pants on one leg at a time. I check on our open positions multiple times a day. And I feel annoyed when a majority are in the red. That said, as someone who “eats, sleeps and breathes” the markets, day in and day out, for over 20 years now … I’ve learned a few things that, perhaps, set me apart.

I hope you saw the trade alert I sent you yesterday afternoon. I recommended selling half of the $39-strike call options we bought on the Alerian MLP ETF (NYSE: AMLP) in early March, now that they’re nearing profit territory again. I promised to share more about my reason for this recommendation. I’ll get into that. And then I have exciting news to share with you today — so please read on!