This is Part II.
I tweeted out part one (as well as Emailed an Alert to our Members) earlier this morning, so I'll take a break while you read that and get caught up...
In case you are wondering, the image on the right is the explosion at China's Tianjin port last night that registered as a 2.9 earthquake and has killed dozens and injured hundreds. It may have been an LNG accident or it may have been a chemical explosion but, either way, all 17 Republican candidates have vowed that we will not rest until the kind of laws that prevent cool explosions like this in the US are repealed so American businesses can fairly compete with China in industrial accidents.
As to the markets, suffice to say you can read yesterday's post and be all caught up as we're right back where we started from yesterday morning. Fortunately, we cashed in the EWJ shorts that we picked for our 5% Monthly Portfolio (see Seeking Alpha's Premium Research to join) and the 10 Sept $14 puts we bought on Monday afternoon for 0.90 hit our $1.35 target yesterday for a very nice $450 gain, which was 50% in just 2 days!
That trade alone puts us 10% of the way to our +$5,000 goal for the month (5% of our $100,000 portfolio) and our other 3 trade ideas have contributed another $800 of their own so far (all this week) for a perfect start and $1,200 gained for the week (so far).
Now, getting back to the broader task at hand - in our previous post we discussed whether or not the markets were going to continue to pull back or if, possibly, we are consolidating for a move higher and I said that, to make that call, we should focus on the S&P 500's top 25 stocks, which make up 44% of the indexes weighting.
