We stopped ourselves out of a bearish position in DIA yesterday with the goal of trying again soon. In serially attempting to pick a top, we have at our disposal a war chest built up in January via the well-timed purchase of some weekly put options. They peaked at a price 15 times what we’d paid for them, yielding a trading gain of $1920 for subscribers who had followed instructions.
Detailed in today’s ‘Touts’ section are my reasons for thinking that the stock market will be particularly vulnerable if it rallies to a new all-time high, as appears very likely. Traders who share this gut feeling should check out the tout while avoiding the temptation to get short while this killer, short-squeeze rally remains in motion. Think like a bull while it lasts.