What a Week and What’s Next?

Another horrible week on the Wall Street.  A 90% down day, followed by 90% up day, and ending the week with another 90% down day. The 20 days average true range (ATR) for Dow has moved from nearly 100 points a month ago to nearly 250 points now. For OPNewsletter, we were trading light in terms of invested capital and still came out with solid results. Just to give you a perspective about market action last month, May 2010 was the worst May in last 70 years!!

OPNewsletter‘s June Income portfolio went up +14% on a capital investment of 31.62%, excluding speculative trades. Which essentially means, we closed up 4.4% on the overall $10K portfolio, significantly outperforming broader markets while avoiding panics/stress/loss of capital.

Past few weeks have provided plenty of reasons for bears to resurface e.g  Bejing property market slumped 70% vs previous month, BP’s Oil Spill, Europe’s crisis, AIA’s rejection of  PRU’s deal, Unemployment number and many more. There are bearish forecast that Dow is doomed based on “various” wave counts and targets being shared as low as sub 1,000 for Dow. Over the past week, the newspapers, internet media, blogs, many financial “celebrities” are just so bearish that it can scare the hell out of anyone.

But here is the bottomline, the way I think, before any “hard rain” drops, Dow and S&P needs to violate Feb low on a strong volume. So read whatever you like, but take it with a pinch (in fact lot of pinch) of salt. There is no doubt that macroeconomic environment looks uncertain, but guess what, we don’t need to rely on mainstream media to tell us that, various volatility indices like VIX, RVX are already telling us.

I would like to re-state what I have been mentioning on the OPDiscussion forum.  Though we have escaped past crashes (the 2008/09 meltdown, Jan/Feb’10 and The latest one) so far, it doesn’t mean we can always avoid the next one. No one can do that all the time. So always, pls always be on guard for your capital with or without OP. I have learned this time and again that in this business, preservation is more important than “potential” opportunity. Complacency has no place.

For OPNewsletter July’10, we have invested only 5.5% of capital as just held on to investing any additional capital before Friday’s meltdown. Let’s see what Monday brings and we’ll invest accordingly. Here is a latest testimonial from the OPN Member.

As you know, I was a member for about 5 months last year and then rejoined recently. I first subscribed to OPN in April 2009 and this was the first time I was exposed to all those income strategies (condors, calendars etc.) I was naïve to think that I could start making money from those strategies after 3-4 months even with OP guidance. As OP says, trading is a business and as with any business there is a learning curve, then next is to gain edge while continuously improving.

After canceling in September 2009 I tried few other newsletters and some trading on my own. I came into conclusion that in terms of consistency, risk management, educational value and comprehensive solution there is no service that comes even close to OPN.

So far, the experience is excellent. OPN provides comprehensive trading solution and not just one or two condors like most other newsletters. Risk management and capital preservation are the most important things. The results are based on actual fills, although in many cases more experienced members get better fills, but overall I think the results should be achievable. I would highly recommend OPN to my friends, actually I already referred at least 4-5 people to OPN.

Kim Klaiman
Toronto, Canada
7 years investment experience, 2-3 years with options.

Thank you for your kind words Kim. I appreciate your feedback and I hope OPNewsletter continue to meet your expectations.

Pls click here to read more customer testimonials. If you are not an OPNewsletter member and would like to sign-up, pls click here to sign-up for the waitlist as OPNewsletter subscription is open via invitation only.

Trade carefully, Trade Profitably, OP


One response to “What a Week and What’s Next?”

  1. […] Bottomline – The coming week is going to be an interesting one as markets halted their advances near short term resistance levels. As I have been sharing for a while, pls be careful and don’t over trade. At best, market action is mixed with one thing relatively obvious. The upside is not great here, downside is; so be on guard for your capital. Bullish, Bearish everything is in the hindsight (except in the extreme cases); the “reality” and the “present” is “trading capital”. If there is no capital, both bull and bear are useless. So read whichever news source you like, conclude whatever you like but one thing is sure, before sky falls, markets have to close below Feb lows. […]

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