Issue #42
Dear Member,
I have an important update for you this morning. On the heels of this issue, you’ll receive a full issue covering my analysis of the Fed’s decision yesterday and new recommendations. But first, we have to attend to an urgent matter.
I have heard from many subscribers and it seems that many of you experienced very large market slippage when the protective stops were hit yesterday for ProShares UltraShort Silver (ZSL) and Direxion Daily Gold Miners 3X Bear Shrs (DUST).
If so, I feel you need to get on the phone with your broker this morning, lodge a complaint, and seek to be compensated. In my opinion, you are entitled to a better fill for both positions. Here’s why, and how you should handle it.
First, let’s take ZSL. My recommended protective sell stop was at $72.09.
According to time and sales, $72.09 was hit at 2:01:07 pm ET. Immediately following the triggering of the stop, there was plenty of volume transacted between $72.09 and roughly $69.
Based on my review of the time and sales for ZSL, I feel you should have been filled at no less than $69, worst case.
Second, for DUST, time and sales shows that my recommended stop at $30.59 was hit at 2:02:29 pm ET. There was plenty of volume transacted between $30.59 and roughly $30, worst case, following the triggering of the stop.
Based on my review of the time and sales for DUST, I feel you should have been filled at no less than $30.
Here’s what to do about it:
If you received fills on your stops for ZSL and DUST at less than $69 and $30, respectively, here’s what to do:
First, call your broker and complain. Don’t be shy. Your broker will tell you that their time and sales shows “fast market conditions” and that there’s nothing they can do about it.
If so …
Second, escalate the matter to a supervisor. The supervisor will naturally — and unfortunately — protect the firm first. Be vocal.
Chances are the supervisor will tell you that he/she will get back to you. If so, give them a couple of hours and then call them back.
Either way, you want to insist on better fills. Threaten them with moving your account. Be tough, but calm and professional.
Third, tell them you will shortly have a copy of time and sales for ZSL and DUST.
The files are too large for me to attach to this email. Check on the member’s website later this morning. My customer service team will post time and sales for both securities for you. Simply print them out so you have them handy.
If, for whatever reason, your broker claims he/she can’t
give you better fills, you have two choices:
1. Should you prefer to stay with your broker, demand a commission reduction.
Not just for these two trades, but on an ongoing basis. Do not accept anything less than the compensation I feel you are entitled to, based on being filled at no less than $69 and $30, respectively for your shares in ZSL and DUST.
2. Find a new broker. Easier said than done. But if you have received lousy fills in the past, this may be the better option. One of my favorites is Interactive Brokers.
Keep in mind, I have had my share of bad fills over the years as well. But in each instance, I was successful at either getting a better fill or some other form of compensation. The key is being vocal, persistent, and professional about it.
Lastly, a note: Some of you have written to me that you believe I may have profited personally from the trading in this service, or from market slippage such as what occurred yesterday.
Let me be perfectly clear: I do not trade the recommendations in this service. The only service where I do have my own money invested is in my Power Portfolio, where its members act on my recommendations a full 30-minutes before I do.
Keep an eye on your inbox, an update and trading issue coming next.
Best wishes,
Larry
