Morning Update: June 09, 2014

1-855-RWT-0008

Yesterday

Let’s see…..record Dow high. Record SPX high, Record VIX low, AAPL split after the close. In all a normal day given what we have seen for the last month. The Dow is now withing 76 points of 17,000. I have said a million times that I see no difference in Dow 17,000 than 16,502.98 or 17,129, BUT the public does.

These big numbers mean things to people. Don’t believe me? Ask 100 strangers what they think would be a long marriage. You will hear 10, 25, 50 years as an answer. When I was growing up people spoke about $1million as being the magic number of being rich. They didn’t say “I am going to quit working when I have $1,104,503 in the bank. It was $1 million even.

Today

This would be an ideal day to make 17,000. I doubt it will happen since we have no news to justify it. I suspect what is more likely is a run toward 17,000 and a failed attempt. Then a day or two of selling. Then when we have some really good news 17,000 will be imprinted. It is at that point I can give up predicting the market.

For a year I have been saying that we are going to 17,000, but I though it would be by the end of March. I was off by 3 months, but that still isn’t bad considering I was saying that to encourage people during Sryia-Gate, Government Shutdown-gate, and Russia first going into the Ukraine.

You know what…I will make one more long term prediction after 17,000. I am not sure if we will go through the number easy or hard, but I suspect it will go through it so fast 17,300 comes days later. There will be short covering like no one’s business. This is what the 3^rd phase of a bull market looks like. Up for no reason other than low interest rates.

BUT the same news that is taking us up will be out months later taking us down. “President Obama craps on the Constitution again, gives another executive order (ignoring Congress), and we fall 400 points. Unemployment at a another low, boom…another 300 points down. Housing picking up strength, BAM, down 400.

How could that be? It is just how it works. The good news will be considered bad. They will just put a negative (instead of positive spin) on things. You see….the markets do what they are going to do. They are a raft floating down a river bouncing off rocks. They follow the path of least resistance, and the current right now has people buying because they don’t know where else to put their money. That never ends well.

This is ANOTHER government created bubble that is NOT going to end well.

In SHORT – BETTER LEARN TO HEDGE. I really don’t care if you just read this everyday for amusement but are not a RW student. Learn to hedge. We have a FREE book in iTunes. If you want to go somewhere else, that is fine too. Just do it. Please take control of your destiny and fortune. If you don’t hedge near 17,300 or higher I don’t even want to hear I didn’t warn you. I have been saying this for a year. So if you dislike me and my political bend for demanding Democratic, Republican and Tea-Party politicians to act like public servants – not self-servants – that is fine. Go somewhere else and learn.

Thanks.

AAPL split Friday but the new share prices and quantities are reflected today. AAPL closed at 645.57, which means the new price will be 92.22 with 7 times as many shares. 

POT is held each Wednesday night at 7:00pm eastern.

Busy week last week.

Hopefully we have a small pullback I can sell a put spread into to further the new hedge I taught. How cool is a hedge that we can sell put spreads every week into? (Evil laugh)

AAPL – Friday we bought the 647.5 put for $0.47 to lock in the profits from the long call spread. Thank goodness this was done when it was. The stock reversed to close down on the day, and saved us from an assignment.

More after the open.

Contract the office at 1- 855 – RWT – 0008 for more details. 

 Interesting Side Note 

Why not! They tricked Obama into not attacking Syria. They tricked Obama to not go into Iran. They tricked Obama into giving them the Crimea. Snowden, a young man, must have been just as easy. He didn’t have Sal Alinsky as an adviser either. 

Attorney Stuff

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