Archive Category: Precision Profits

Over the past week, we saw that the SPDR S&P 500 ETF (SPY) is almost unchanged. However, that fact hides a great deal of day-to-day volatility. The difference between the high and low exceeded 1% on four of the last five trading days (through Thursday’s close).

We see that sentiment has shifted in the stock market. Yesterday’s market selloff followed by today’s rally is evidence of that. Now, increased volatility is a sign of nervousness among large traders. They are ready to sell on the first sign of negative news. Although it’s a precarious market, it also creates conditions for some great trading opportunities.

I want to start by noting a small change to your emails. You’ve started getting more emails from me over the past couple of weeks when I began sending alerts for credit spread trades around the same time as the “Daily Bonus Trades” emails that go out at 10:15 a.m. Eastern.

This week in Precision Profits, we benefited from a few quick and profitable trades… On Wednesday, we switched to new puts on iShares Russell 2000 ETF (IWM) following our intermarket strategy signal. This led to a gain of $358 per contract. Our total return on this strategy is now $995 per contract since we began trading it in October of last year.

We had another busy trading week in Precision Profits. It’s time to review our recent action in the portfolio… On Wednesday, we switched from calls to puts following our intermarket strategy signal, leading to a loss for our calls on iShares Russell 2000 ETF (IWM).