{"id":12237604,"date":"2020-04-01T08:29:35","date_gmt":"2020-04-01T12:29:35","guid":{"rendered":"https:\/\/www.philstockworld.com\/?p=12237604"},"modified":"2020-04-01T09:31:10","modified_gmt":"2020-04-01T13:31:10","slug":"whipsaw-wednesday-only-down-700-points-not-a-big-deal","status":"publish","type":"post","link":"https:\/\/www.philstockworld.com\/2020\/04\/01\/whipsaw-wednesday-only-down-700-points-not-a-big-deal\/","title":{"rendered":"Whipsaw Wednesday – Only Down 700 Points? Not a Big Deal!"},"content":{"rendered":"

\n\t\"\"Wimps!<\/strong>\n<\/p>\n

\n\tThe Dow drops 700 points <\/strong>(1,200 off yesterday's high) and everyone is back to Doom and Gloom.  We are in the MIDDLE of a Global Catastrophe that will play out over the next two to three months – it's the expectations of the participants that need adjusting – not the markets.<\/strong>..\n<\/p>\n

\n\tThis is like standing in the rubble of the World Trade Center the afternoon of 9\/11 and asking why the markets haven't gone back up yet – it's irrational behavior.\n<\/p>\n

\n\tYes, the Government APPROVED Trillions of Dollars in stimulus on Friday but it hasn't been deployed yet.  That doesn't seem to stop a parade of idiots from going on TV to say "Well, I guess the market is telling us the stimulus wasn't enough."  What morons!  Even worse is the uncritical response they get from the Hosts (who are usually empty suits anyway) and the Producers whispering in their ears.  Welcome to the 21st Century, where your idiotic opinion gets the same weighting as actual facts!  \n<\/p>\n

\n\tAs our Members know, there's always a song in my head and this morning it's:\n<\/p>\n

\n

\n\t\t"When I'm riding in my car<\/span>

\n\t\tAnd a man comes on the radio<\/span>

\n\t\tHe's tellin' me more and more<\/span>

\n\t\tAbout some useless information<\/span>

\n\t\tSupposed to fire my imagination<\/span>

\n\t\tI can't get no<\/span>\n\t<\/p>\n

\n\t\tSatisfaction" – Stones <\/a><\/span>\n\t<\/p>\n<\/blockquote>\n

\n\t\"CoronavirusWhy do we listen to these people?  When have they ever been right?  The same thing happened in 2008 when the people who had the money (the Top 1%) got their bailouts (TARP) and then went about telling the Bottom 99% that the World was going to end and they should dump all their stocks – the same stocks the Top 1% were buying up because they knew the World was not going to end at all.\n<\/p>\n

\n\tI'm not a naysayer – I was one of the first analysts in America to tell people to hedge for a market downturn back on January 23rd<\/a>, when there were 1,000 cases in China and I was worried it would be like SARS and cause a 10% drop in the market back in 2002.  I was on top of it BECAUSE I'm a student of history and I look at how similar situations played out in the past to indicate what is likely to happen in the future.  This time is almost never different – despite what the man on TV tells you<\/strong>.\n<\/p>\n

\n\tBecause we hedged, our Short-Term Portfolio (STP) is up 398.7% for the year as of yesterday's close and it's important to step back and look at our hedges and determine whether or not we are adequately covered in case Team Trump continues to bungle their way into 1M deaths – which is way past my 50,000-200,000 predicted range.  With 189,633 US cases as of this morning and about 3,000 deaths (they don't give US totals) and only 7,136 recoveries – things are getting worse and worse but we already expected that – so it shouldn't drastically change our market outlook – yet:\n<\/p>\n

\n\t\"\"\n<\/p>\n

\n

\n\t\tFinancial 3x Bear ETF (FAZ)<\/strong> – We played this one as a technical trade when the VIX was high and FAZ was spiking – we just couldn't resist the ridiculous price they were offering for the June $85 calls but now we can play FAZ as a hedge – just in case the bailouts really aren't enough so we're going to buy back the June $85 calls and pocket a $35,175 profit and add the following hedge:<\/span><\/strong>\n\t<\/p>\n