Powell's Looking More Like Volcker
He's Just A Little Shorter
Between customers, revising “The Ticker’s Bible” and getting ready for the weekend, time is not on my side but I wanted to post a few words of wisdom.
Never let a profit disappear.
Keep it simple stupid.
Have patience and a plan.
Recently I moved out of Gold and Natural Gas, both at profits. No, I didn’t buy at the bottom and sell at the top but I made money; that works for me and my clients. While I’m still looking at both, neither is attractive for one reason or another. I’ll stick with selling more Russell futures and buying VIX and WTI Crude calls for the interim. The reasons have been discussed in recent articles both here and on LinkedIn; read them.
When the 30-Year hit 115.00 yesterday I sold half of the TLT position in my customer accounts. I did it a little differently than most as I always do my best to avoid capital gains and taxes where applicable. I have no problem in Roth IRA accounts but a few new people are still dealing personally. For them, I sold January 85 calls on the TLT.
Never doubt the “Power of the Powell”. It was obviously a time to be careful as he and his “Fed Clan” has telegraphed, like what Yogi Berra would say, “it ain’t over ‘til it's over” and Powell, like Volcker is true to his word. For all those rookies out there who think the worst is over, think again. My thoughts are that the TLT is going to head lower for a while, perhaps hitting a double-bottom, perhaps not. I’ll keep watching and you should too.
Back to the book folks. Time is not on my side but knowledge and experience is. I want to thank everyone who is signing up. They know I am for real and they know I keep in touch. I should have a “paid for” article out on Sunday before the family haeds to Dallas to watch the Giants pull off a win. OK, I’ll speculate from time to time but there’s no reason to guess “what’s next” here. Buy when they sell and sell when they buy and follow the three rules above.
Those who know me understand that I am patriotic. I, like you should be thankful for what you have living here in the United States. They’re not pouring in from all over the world for no reason. It’s good here. Think you can find a better place, go there. Until then know what’s important and other than Memorial Day in my book Veteran’s Day is a close second. When you see someone who has served, say thank you. Better yet mean it. They gave of themselves so you can have freedom. Some gave their lives. A simple “thank you” makes them feel like the champions they are. Be like Nike and “just do it”.