Tomorrow’s unemployment figure for October, due out at 8:30 am, is bound to cause tremendous market volatility as “number-centric” investors and traders try to figure out what it all means.
Whatever the unemployment figure is, it won’t change the trends. But it can cause wild swings. So the prudent measure to take right now is to grab some profits off the table. Especially so since short-term, these markets are a bit oversold and now holding short-term support levels.
Specifically, I recommend taking profits on HALF of your …
- UUP shares
- UUP call options
- EUO shares
- EUO call options
- DZZ shares
Don’t worry. If we get a bounce, which is likely, I will look to add back to positions. If we don’t get a bounce, I will add a new round of positions on a break of nearby support levels.
This way, you take some profits off the table, and when the time is right, you put some new ammo to work.
All members should act on the following recommendations as soon as possible. Since I am using limit sell orders on the call options, do not chase the markets.
|
For ALL Members who own the following positions: 1. Sell HALF your shares in PowerShares DB US Dollar Bull ETF, symbol UUP, at the market. Be sure to reduce the number of shares for your good-till-cancelled protective sell stop at $23.74 by one-half. 2. Sell HALF your PowerShares DB US Dollar Bull March 2016 25 call options (UUP160318C00025000) at $0.80 or better, good-till-cancelled. 3. Sell HALF your shares in ProShares Ultrashort Euro, symbol EUO, at the market. Be sure to reduce the number of shares for your good-till-cancelled protective sell stop at $21.56 by one-half. 4.Sell HALF your ProShares UltraShort Euro Jan-16 25 call options (EUO160115C00025000) at $1.30 or better, good-till-cancelled. 5.Sell HALF your shares in DB Gold Double Short ETN, symbol DZZ, at the market. Be sure to reduce the number of shares for your good-till-cancelled protective sell stop at $6.53 by one-half. |
Best wishes and stay tuned!
Larry
