We're back!
After taking two years off from publishing our morning posts on Seeking Alpha, we've begun sharing our entry-level PSW Reports again. The PSW Report is the morning market overview for our Members at Philstockworld published pre-market each day. Though it is only a small portion of what we publish for our Members, we still have plenty of actionable trade ideas to share early each morning. Now that we have two month of posts under our belt - it's a good time to review our performance from Month 1 and discuss our trading techniques.
April 22nd was our first day back at Seeking Alpha with "Market Manipulation Takes Center Stage" in which I noted what BS the low-volume moves up in the market were. We also discussed how easy it had been to "spoof" trades during the Flash Crash and often in our weekly Webinars (and we had happened to discuss it the day before) we show people how this sort of manipulation happens every day and learning to spot it can make for very profitable counter-trades - especially in the Futures. Our strategy was summed up nicely as I said:
Still, the best way to make money in these crazy markets is the Warren Buffett way, which is also my way - keep your cash ready and buy good companies when they get cheap, don't be greedy and sell risk premium to others. It's not complicated - it just takes a bit of discipline.
As examples I pointed out several stocks we liked that were already in our portfolios (IBM, LL, RIG, LQMT, ABX, CLF, USO, UCO, BHI, HOV, CIM, MAT, LULU). We use option spreads to give ourselves 15-20% discounts on our entries (see "How to Buy a Stock for a 15-20% Discount") and, as a new trade idea that morning, I suggested:
- Ultra-Long Oil ETF (UCO) July $5/9 bull call spread at $2.80, selling the July $5 puts for 0.14 for net $2.66, now $3.95 - up 48% (UCO reverse-split but the old options are still there)
The next day, in "Bad News Is Still Good News In China As Poor PMI Boosts Market" we also discussed the Financial Engineering that S&P companies were/are engaged in to boost their books.
