Nicholas Vardy
GLOBAL STOCK INVESTOR HOTLINE UPDATE 24
The roller coaster continues. Global stocks started to recover gradually early this week as the European Central Bank, the Fed, and the Central Bank of Japan pumped billions of Euros, dollars and yen into the global money market. On Monday, conditions seemed to be normalizing. Yet by Tuesday, U.S. markets took another sharp dip. Asian shares followed suit and fell overnight as markets continued to battle credit market crash jitters.
A Pair Of Options Plays Betting On The Bounce
Let me begin with a caveat. Today’s recommendations are all option plays on our current positions. Options, by definition, are highly speculative. So if you only invest in stocks, sit tight for the week as the market steadies itself.
GLOBAL STOCK INVESTOR HOTLINE UPDATE 23
Mr. Market continues to grapple with his mood swings on the back of nervousness about subprime woes. As bad as current sentiment seems, the sell off in the S&P 500 just about matches the selloff in May of 2006. And emerging markets — which sold off 26% during that correction — actually have held up much better this time around to drop only 10.5%. This bodes well for a strong recovery.
Taking Shelter From The Equity Storm
The equity storm we’ve experienced in the last couple of weeks has been more than just a summer squall. And just as the rising tide lifts all of the boats, they all sink in a ferocious storm. The good news is that that the sharper the sell off, the bigger the bounce. And since nothing fundamental has changed in our holdings, our best bet is to ride out the storm. But as always, it’s crucial to stick with our stops if they are hit.
GLOBAL STOCK INVESTOR HOTLINE UPDATE 22
As the market endured its worst week in four years last week, it capped what has turned out to be the weakest three months in U.S. stock markets since 2004. That’s an abrupt about face, as the market was setting record highs only two weeks ago.
Global Bull Market Special Alert: A Triple Play Of 50%+ Profits
Global markets rallied strongly yesterday to give us a chance to cash in on a triple play of 50%+ profits in our options positions. Not bad, considering that we are doing so on the heels of the worst week for global markets in the past five years!