Cohn resigned futures crapped

Once confident investors pushing this market higher are now spooked by anything and everything. Trump once boasted about the stock market, talking heads were praising him, investors had bright future in front of them and the bull was unstoppable.

It all changed suddenly on a dime.

They are now all spooked by the same man and same policies of the praised economic guru who is no longer seen as one. An economic adviser in Trump’s administration Gary Cahn, considered by some as a reasonable guy in the entire Trump’s crazy cabinet (I do not know Cahn so I can’t comment on this) resigned from Trump’s government. They announced it at 5:30 pm today and futures crashed 1.41%

SPX futures

Although we recovered a bit from the lows, the market looks gloomy. It is still too early to say where the markets opens tomorrow morning but it seems that investors are spooked. They believe that once Cahn was the one who kept Trump leashed so he won’t go amok in regards to his “hitleric” shouting about tariffs. Like we haven’t seen this before on any different matters.

Well, we can expect bumpy trading tomorrow. It is hard to say, what would be the best approach to trade this market. So we have to wait and see.

We have a few trades with tomorrow expiration against SPX and Friday expiration against AMZN.

SPX futures
SPX futures

If we open where the futures are now, our puts will be in a danger. The hard part will be what would be the best thing to do – convert to calls or just roll? With futures this deep it is hard to say whether we will go lower or we the reason will return to the market and we recover. Rolling puts only would help should we recover or kill us should we not. Converting to calls should help should this market continue down but kill us should we recover. Now I wish to have the crystal ball.


 · Trading activity today


Today, I did a few trades for which I kick myself now. I rolled my old calls into puts which cost me some buying power and now it seems it was a mistake. But, when I was doing it, who knew?

Let’s see how tomorrow goes and how I will be, or will not be, able to navigate this mess, again.

This starts making me tired and I think I need break. I know I said that several times but I need to stop trading and take a break. So I will be sitting this through and managing the existing trades only and not opening any new ones.

A summary of opening and closing trades.
(balance + $1490.00)

Trading Results


 · Dividend stocks to buy


Out of our watch list of 35 dividend stocks the following ones are a good buy at today’s prices (03/06/2018):


Disclaimer: The list above is based on calculated fair value and 52wk high offset valuation. The values are subjective to our calculations and opinion and may differ from your own. If you decide to trade or buy these stocks, do so on your own risk and do your own homework. The list is not our recommendation to you.

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