Fabulous Friday – Counting our Blessings in the Market Collapse

October 10, 2014 at 08:35 AM EDT

Wheeeeeee – isn't this fun? We're certainly having a good time and, if you've been following our posts and getting our trade ideas – you probably are too as yesterday's DXD trade idea, for example, made 100% in a day for the 2nd time this week! Now let's say you put just 2% of your portfolio into a hedge like that against a worry that we'd have a 5% drop. Well, on Tuesday we collected 100% of that 2% on a 2.5% drop and yesterday we collected another 100% of 2% on another 2.5% drop – there's 4% back and we never even fell 5%. This is how you hedge and hedging is what we teach you to do at PSW (sorry, Memberships now full, try the wait list for next month). Of course, if you find yourself on the wrong side of the market, the Futures also make excellent hedges and it just so happens that we teach that as well! We did a Futures Webinar just this Wednesday and you can watch us make money live on the replay . Those are the hedging strategies that led us to call for shorts yesterday ( right in the morning post ) at 1,100 on /TF (Russell Futures), 4,040 on /NQ (Nasdaq Futures), 1,965 on /ES (S&P Futures) and 16,900 on /YM (Dow Futures). Aside from the Alert we sent to our Members, we also Tweeted out and Facebooked? the trade ideas – THAT'S HOW SURE WE WERE! If you followed those, we closed the day at: Dow (/YM) 16,550: down 350 points at $5 per point – Gain of $1,750 per contract S&P (/ES) 1,918: down 47 ponts at $50 per point – Gain of $2,350 per contract Nasdaq (/NQ) 3,950: down 90 points at $20 per point – Gain of $1,800 per contract Russell (/TF) 1,060: down 40 points at $100 per point – Gain of $4,000 per contract The margin requirements for the Futures trades are roughly $4,000 per contract so we're talking net gains of roughly 50-100% IN A SINGLE DAY on our hedges. It's a very simple process – we …

Wheeeeeee – isn't this fun?

We're certainly having a good time and, if you've been following our posts and getting our trade ideas – you probably are too as yesterday's DXD trade idea, for example, made 100% in a day for the 2nd time this week!

Now let's say you put just 2% of your portfolio into a hedge like that against a worry that we'd have a 5% drop. Well, on Tuesday we collected 100% of that 2% on a 2.5% drop and yesterday we collected another 100% of 2% on another 2.5% drop – there's 4% back and we never even fell 5%. This is how you hedge and hedging is what we teach you to do at PSW (sorry, Memberships now full, try the wait list for next month).

Of course, if you find yourself on the wrong side of the market, the Futures also make excellent hedges and it just so happens that we teach that as well! We did a Futures Webinar just this Wednesday and you can watch us make money live on the replay.

Those are the hedging strategies that led us to call for shorts yesterday (right in the morning post) at 1,100 on /TF (Russell Futures), 4,040 on /NQ (Nasdaq Futures), 1,965 on /ES (S&P Futures) and 16,900 on /YM (Dow Futures). Aside from the Alert we sent to our Members, we also Tweeted out and Facebooked? the trade ideas – THAT'S HOW SURE WE WERE! If you followed those, we closed the day at:

Dow (/YM) 16,550: down 350 points at $5 per point – Gain of $1,750 per contract
S&P (/ES) 1,918: down 47 ponts at $50 per point – Gain of $2,350 per contract
Nasdaq (/NQ) 3,950: down 90 points at $20 per point – Gain of $1,800 per contract
Russell (/TF) 1,060: down 40 points at $100 per point – Gain of $4,000 per contract

The margin requirements for the Futures trades are roughly $4,000 per contract so we're talking net gains of roughly 50-100% IN A SINGLE DAY on our hedges. It's a very simple process – we…