Morning Update: March 27, 2014

DOW closed what it was up yesterday.
It was down 98.89 at 16,268.99

The media is calling this the year of volatility, but the Dow is in less than a 400 point range all month. When the Dow was at 16,060 they were screaming “it is over for this market”. When at 16,450 they were clamoring to call the next bull run. LOL It makes my hate mail when mention politics seem boring in comparison. 

[/ezcol_1third]

AAPL closed down 5.21 at 539.78

POT people….. I was not filled on the risk reversal to hedge off the remaining portion of the original long position. I am still happy, though. 

[/ezcol_1third]

The VIX closed up 0.91 at 14.93

[/ezcol_2third_end]

The TLT closed up 0.85 at 109.44

This was simply a flight to quality and risk aversion when the media started reporting on Obama. 

[/ezcol_2third_end]

[/ezcol_1third]

GLD = 125.41 down 1.00

SLV = 19.02 down 0.20

[/ezcol_2third_end]

[/ezcol_1third]

Closed down 7.48 at 212.98

[/ezcol_2third_end]

Yesterday

It was a slow and bullish market and it turned around to the downside. There were many reasons for this.

1 – Someone bought $190 million worth of puts in the SPX. When the traders sell that many puts to people they are getting very long the market. To hedge they have to sell a lot of futures, and this puts downside pressure on the futures.

2 – Russia is amassing more troops at the Ukraine boarder, but promising not to go in.

3 – Obama made a mention about NATO standing strong against brute force. Big deal, we have heard that before, but something spooked people this time more than before. I could NOT for the life of me find any news about it until after the close as the media is more interested in fluff.

So the 80 point up day reversed to a 99 point down day. 

Today

Don’t even know. Normally all of these doldrums can be attributed to people nervous about the bull getting tired. But that is usually when the last leg kicks in to the upside. I must admit that even though I know better to be worried right now, I am getting a tad nervous.

I am not so much nervous that the bull is over – they just don’t end in a whimper. I know it is coming and probably not too far after the April mini-class. Look at a historical chart of May and June markets.

But I am more concerned that we have more political crap in our future, and that I hate. I hate mentioning FACTS as people say I am an A***#@E for talking about it. One thing has nothing to do with the other. Can’t I be an A-hole and still be right?

The fact that people don’t agree that America looks like the Red White and Blue is going Mauve and Lavender in this administration are not reading international papers. The fact is the rest of the world views us as weak now – period. That is not my opinion being spoke (even if it is my opinion), so deal with it (please). I wish it were not true. If we can clone where is Ronald Reagan 2.0?

If I were Kim Jung Un I would be launching missiles too. Why not? What is the downside? Being put on double-secret probation? If he were weak or had oil, we would be there already, so why not beef up?

POT TONIGHT!

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

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

Last Night’s Topic: Questions over the last 3 weeks answered.

Primarily Hedging Questions

Too True To Be Funny

(Never a joke, but always funny)

__ __ __ __ __ __

Attorney Stuff

DISCLAIMER (Seriously!)

Trading is almost as much fun as black jack in Vegas, but without all the annoying distractions of free drinks, Broadway shows, gorgeous people with low morals, and free buffets. It also has about the same odds of success, so when you lose all your money you wont have to walk past a smiling pit boss. Even Bruce Wayne lost everything with options in The Dark Knight Rises, and Superman keeps his day job at the DailyPlanet newspaper.

We have the utmost respect for our attorneys who tell us any attempt to trade is throwing money out the window, and investing is risky business (still a great movie). Past performance doesn’t mean a thing. The future is even scarier. There is no guarantee the sun will come up tomorrow. Random Walk and everyone associated with it promises absolutely nothing. We guarantee nothing. We strongly recommend against trading, and request you seek out professional advice when ignoring this advice.,

Random Walk only provides education (and a great cup of Starbucks if you visit our office). If you want advice please consult an attorney, licensed broker, Joe Kearnan, tax consultant, investment adviser, etc. Random Walk, LLC is full of morons, dolts, has-been(s), chromosome damaged individuals, thieves, losers, and carnival barkers. Any attempt to find a semblance of intelligence or integrity in Random Walk would be a waste of time.

When reading this you acknowledge that you agree to hold harmless Random Walk, LLC, its employees, independent contractors, authors, managers, owner(s), spouses, children, cousins, friends, bail bondsmen, and favorite bartender. In fact, you agree to grow up, accept some responsibility for your own actions, and stop believing the media that sells you on how nothing is your fault. You further agree in the antiquated and lost values that America is the land of opportunity and not the land of handouts. You agree any loss in the markets is a result of your own actions as we told you NOT to trade without consulting someone other than us.

All paper trades are SOLELY for example and to illustrate how certain strategies could perform without the benefit of hindsight and back-testing. You agree NOT to trade based on anything we say, do, write, advertise, etc. If we were smart we would be teaching high-school math and making the really big bucks. You agree to abide by the laws of your country and that it is legal to accept this transmission.

Every attempt has been made to ensure accuracy, but we are clueless. As a result it would be foolish and impossible to assure the accuracy of any numbers and/or come close to writing a sentence that is grammatically correct. You agree not to get on our case emotionally, physically, spiritually (no Voodoo dolls please) or legally when we screw up. We are doing our best to keep up with evolution, but it is a fast race and we are falling behind. If any of this stuff is too hard to accept please let us know and we will remove you from our mailing list and short term memory.

Random Walk deeply cares about each and every student. We try to keep the selling of products to a minimum. We believe our students are a result of attraction rather than promotion. This does NOT mean that the more attractive you are, the more we promote ourselves (in general).

Our products are written ONLY by retired floor traders, fund managers and money manger acting as educators only. They are expensive and unique. That does NOT mean they (materials) come on a tablet of concrete from Mt. Sinai. Though we make every attempt to do things accurately, we are human and make mistakes.

Because of the proprietary nature of our materials and the ease of electronic copying, all sales are final.

Sales are far from our largest concern. If you are a whiner, complainer, or generally unhappy with life please go to someone else in this industry who values money over happiness. We can point you in the direction of other firms that only care about the bottom and top line. Jerry Springer can also point you in the right direction. Besides whiners are a total distraction from the awesome group of students we are fortunate to have. We are truly blessed and thank them (provided that is fine with our lawyers). “Thank yous” are only handed out in countries where legal and void where prohibited. If your country does not allow “thank yous” please refrain from accepting it. This disclaimer is copyright material and not a joke.