New Money Link Trade Alert:

If you're new to Money Link or have any questions about how to allocate stock positions vs. options or how to execute Money Link trades, watch this video first.

** I'VE UPDATED THE ENTRY PRICES SINCE THE ORIGINAL ALERT WENT OUT THIS MORNING. SEE BELOW FOR UPDATES. **

Hey guys,

I’ve got some trades for you this morning. 

First we’ll exit a Swing Trade:

SELL TO COVER GLD AT $181 OR HIGHER.
BUY TO COVER USO AT $31 OR LOWER.

Now, here’s the new Swing Trade:

BUY SPY AT $345 OR LOWER.

SELL SHORT EWZ AT $29.35 OR HIGHER.

And there’s an Options Play:

BUY SPY 10/16/20 $340 CALLS AT $11.00 OR LOWER.

BUY EWZ 10/16/20 $32 PUTS AT $3.30 $3.50 OR LOWER. (Note updated price.)

In this cooperative chart of the S&P 500 ETF (SPY) and the Brazilian ETF (EWZ), you can see that the white/blue bar chart in S&P is consolidating to go higher, while the green line (EWZ) is  in a downtrend and looks ready to make new lows.

As you may know, the U.S. dollar (USD) has been weak against almost every currency in the world. The one outlier is the Brazilian real (BRL).  

If the USD/BRL moves above 6, we will almost certainly make money — I’d expect Brazilian stocks to crater at that point.

It’s important to execute both sides of the link at the same time and to respect the limit levels mentioned above -- never chase a trade.

As always, you can track our open positions here.

LFG!

Jeff Zananiri
Joy of the Trade