So far, OPNewsletter is experiencing a great start to a new year by gaining +2.6% during the first trading week of the year to close at +1.81% from -0.81% last week. So far we have invested almost +60% of the capital and are sitting on 40% cash that we’ll start using shortly for other portfolios. Our objective is to invest only 60-80% of the capital and keep remaining capital for the exceptional opportunities or for adjusting the portfolios as when the need arise. This past week even the FREE WMT trade, also hit its +50% profit target. Congratulations if you took it AND booked profits.
So far the star in this month’s portfolio are RUT and VIX up +13% and 14% respectively. I have started including VIX from Jan 2012 and I expect it now become a regular income generator. Recently I also surveyed OPN members to explore possibilities to include futures. The response is positive and probably sometime in next few months, I will adding another leg to the OPNewsletter to generate additional alpha for the members.
In short, Markets continue to remain volatile and while US decoupling continues, there is wide range of opinion spectrum, ranging from expansionary US economy to recessionary estimates. John presents a vivid scenario on why it doesn’t look very rosy, Bill Hester lists five global risks that you may want to monitor in 2012. EURO has already hit 11year low vs Japanese Yen. Here are some thoughts from Bill (Towards the Paranormal) on what to do-
Until the outcome becomes clear, investors should consider ways to hedge their bets, including: maximizing durations, U.S. Treasury bonds that may potentially offer capital gains, long-term Treasury Inflation Protected Securities (TIPS), high quality corporates and senior bank debt, and select U.S. municipal bonds.
Well, whatever the outcome maybe, it is not going to be easy to trade via equities. While I am of the view that this is not going to be a glamorous year and uncertainty will continue, I continue to favor Options Trading to ring outperforming gains making it an exciting year. Join now if you would like to reap benefits from another confusing year for the markets. If you don’t want to be directional but still would like to trade the markets to add alpha to your portfolios, OPNewsletter may be the right choice to add to your investment toolbox.
Profitable Trading, OPбългарски икони