I’ve been talking about a "super rally" for a while now. My first article on it was on July 28th (Click here to see the article). At the time, SPX was only at 1385:
SPX touched 1475 on Friday. That’s 90 points or +6.5% on the broader market. All through August, the market traded in a tight range and most analysts were calling for the market top, even after SPX had broken above 1400. We acknowledged their views but stayed with our own, and have been raking in the profits in the past couple of weeks. Once of our long-time subscribers exclaimed in the Trading Room on Friday:
rishi September 14, 2012 8:56 AM
Excellent Call on that "Super Rally" – it came through in spades!!!
In 2 months my portfolio gained 10X more than what I paid for 12 months subscription. I am Happy with Happy!!!
This week was a week of triple-digit gainers, and ALL, but one, of our positions came in the GR$$N. We started the week with +110% and +119% winners on NOV and CRM respectively. We held the NOV calls for about 3 weeks, while the CRM trade was overnight. V gave us a +128% return. More big winners came in on Thursday and Friday, as we piled in on the longside after the Fed’s announcement. WYNN, CF, and FFIV were overnight gainers, with WYNN at +171%. CAT, COG, and QCOM were position trades from earlier this week, with QCOM scoring as high as +188%. Here are the closed trades for the week:
This is one of the best times to trade options. VIX is low so the premiums are low. But, the movements are big as we are in a "super rally". Too many people are still in denial of this rally, and many have begun to play "catching up". If you think you’ve missed this rally, you haven’t. We are perhaps only in the 2nd inning!
Don’t forget! If you sign up for a monthly subscription of our services now, you’ll get the 2nd month for FREE. If you sign up for a quarterly or yearly subscription, you’ll get an instant 15% rebate. (Click here to see more details)
Hope you’re enjoying your weekend. I’ll be back with next week’s Market Forecast tomorrow night!
Happy Saturday and HappyTrading! ™