ARE YOU READY?
Monday is just a few days away and the Opec meeting in Doha, Qatar is looming. The market has been stagnant the past few days and has “felt” really weird. You can just feel everyone is waiting on this meeting before doing anything significant. I feel volatility building like a balloon about to blow!
I have been preparing for high market volatility and lower oil and gas equity prices all week. I really can’t wait! I believe this will be a buying opportunity for those of us that are long-term investors in oil and gas companies that have been beat down.
Also, if oil indeed sells off (as it started to do today) on Monday and next week there will be a great buying opportunity created for ALL stocks. The entire market will be drug down if the meeting Sunday goes poorly and this will be the time to scoop up some stock you want to own long-term.
Be ready. Create your strategy Sunday. Preparation is key to success!
NEXT WEEK’S TRADE(S)?
S&P OIL & GAS INDEX [stock_quote symbol=xop]
Short the XOP!! If you are late to the game don’t panic. I believe you will have a chance to short the XOP Monday and still catch excellent gains. If you are an experienced trader, like risk and want huge gains (potentially) I would be BUYING the APRIL 2016(4) 30 WEEKLY PUT expiring next Friday. Currently the OI (Open Interest) on this option is 5,141 contracts, but the volume today was 21,434! The mark was .24 cents per contract at the closing bell.
CBOE Volatility Index [stock_quote symbol=vix]
I have been rather quiet the past few days because I’ve been getting acquainted with my new account balance. I funded $20,000.00 on Wednesday in preparation of my budget trader challenge starting May 1, 2016. I’ve been watching and creating my strategy. Trades I did make yesterday and today included BUYING 50 contracts of the JUNE 23 CALL option (again) on the VIX @ $1.35 and $1.30 per contract with an average trade price of $1.325 currently.
I strongly believe the VIX will go up in the near future. I was profitable roughly 5% today and could have gotten out, but I’m expecting a 20-30% gain on this trade. Volatility is coming, I guarantee it…
OPEC DOHA MEETING
I am looking very forward to Sunday and Monday to see what happens at the OPEC meeting on Sunday, and then how the market reacts on Monday. I will be creating limit orders for both selling PUT’s and buying shares of stock for Denbury Resources [stock_quote symbol=dnr] as well as Vanguard Natural Resources [stock_quote symbol=vnr].
More on my strategy this weekend after we see what happens Sunday. Prepare yourself! Next week may be a wild ride…
APPLE BREAKING NEWS
Apple [stock_quote symbol=aapl]
This is not really breaking news, but around lunch Apple released a statement stating they were reducing iPhone production due to low demand. The stock is getting slaughtered and I just want it on record that I’ve been predicting this for over a year!
I believe Apple is done and has been since Steve Jobs died. Tim Cook is, I’m sure, a great CEO, but he is not Steve Jobs and never will be. The innovation is gone and recreating the same devices over and over in different colors with better specs will carry you only so far before everyone realizes you’ve done nothing for years.
I am a user of Apple products and could not operate without my iPhone 6 Plus (mainly for trading), but let’s face it…Apple is not the powerhouse it once was. I would be short Apple or out of it entirely.