Archive Category: Max Profit Alert Archive

Of our five open positions, two are bullish: call options on solar contractor ReneSola Ltd. (NYSE: SOL) and our energy sector trade, calls on the Alerian MLP ETF (NYSE: AMLP). Three are bearish: put options on the iShares MSCI Spain ETF (NYSE: EWP), puts on the SPDR Technology Sector ETF (NYSE: XLK) and our Tesla Inc. (Nasdaq: TSLA) puts. We have more bearish positions because of the market environment.

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My thinking and view of the market hasn’t changed much since the detailed review of our portfolio I shared last week. That means all we need to do this week is remain patient and see how the market moves our open positions. Of course, I’m always on the hunt for our next new position. The stock market has moved higher over the past week. This uptick came after a sharp move lower the week before. This “seesaw” (aka “mean reversion”) action is quite typical in a bear market. As we say, nothing moves in a straight line. The recent strength in stock prices means our bearish trades aren’t going our way for now.

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.