Navigating a Frothy Market

Dear New Money Club Member,

They finally shook the tree.

Stocks slid ahead of the long weekend with tech leading the decline. Talking heads are blaming yesterday’s unemployment numbers. But this is profit-taking, plain and simple.

On the trading floor, we’d call these pullbacks “shaking out the weak hands.” Many have been waiting for a pullback such as this to reload — because markets move up, they move down and there's always money to be made.

It’s about being able to ride the waves. It’s why we trade options, as they have staying power to ride through the ups and downs of market swings, buying us time to lock in winning trades.

Ignore the doom and gloom from the mainstream media, because every pullback is an opportunity to ride the next wave higher!

Now, the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), jumped higher to 31 on this pullback. So, be prepared for the many more dips ’n rips in September that will create a lot of fast profit opportunities.

That’s my promise to you: to navigate you through any market easily and profitably.

Portfolio Update:

On Monday, we added our newest position:

  • Buy to open Energy Transfer LP (NYSE: ET) Sept. 18, 2020, $6.50 calls (ET200918C00006500) up to $0.20 per contract or better, for the day.

Right now, our open positions are:

  • Nordic Amer Tankers (NYSE: NAT) Oct. 16, 2020, $5 calls (NAT201016C00005000).
  • ANGI Homeservices Inc. (Nasdaq: ANGI) Sept. 18, 2020, $15 calls (ANGI200918C00015000).
  • Buy to open Energy Transfer LP (NYSE: ET) Sept. 18, 2020, $6.50 calls (ET200918C00006500).

Now we wait and let the market come to us. And I’ll be keeping you updated every step of the way.

I’m looking forward to answering your most pressing questions next Wednesday. If you want yours included, send it over now to questions@newmoneycrew.com.

The markets are closed this upcoming Monday in observance of Labor Day. Have a great three-day weekend, and I’ll have a new trade for you on Tuesday.

To your wealth, freedom and options!
Joshua Belanger
New Money Club

P.S. If you're new to the New Money Club or have any questions about how to allocate positions or how to execute trades, make sure to watch this video.