UC San Diego’s Geisel Library, h/t sandiegomagazine.com
“You will come to a place where the streets are not marked. Some windows are lighted. But mostly they’re darked. A place you could sprain both your elbow and chin! Do you dare stay out? Do you dare go in? How much can you lose? How much can you win?
And IF you go in, should you turn left or right… or right-and-three-quarters? Or, maybe, not quite? Or go around back and sneak in from behind? Simple it’s not, I’m afraid you will find, for a mind-maker-upper to make up his mind.” — Dr. Seuss, Oh The Places You’ll Go!
“Be patient, keep studying, and be 100% prepared. Later, at the least expected time, when all the news is terrible, winter will ultimately pass and a great new bull market will suddenly spring to life…So get prepared and do your homework. Create your own buy and sell rules that you will constantly use.”
That’s some bear market investing wisdom from William O’Neil.
Options Hotline reco update, FYI: +35% in a single session on our Micron puts!
Sensible speculators seek to buy options that will move from “out-of-the-money” to “in-the-money.” That’s where the greatest gains are made and that’s what our most recent recommendation (see 03-31-20 Options Hotline) did today.
The Micron June $40 put triggered at $3.75 and subsequently traded as high as $5.05, +35% in a single session, with an always known and strictly limited risk!
As you can see on my daily candlestick chart above, Micron, appears to be tracing out a potential “h” pattern. That’s where price has a sharp decline, followed by a bounce that rolls over and points to a likely test of the recent lows. This bearish price pattern closely resembles a lower case “h.” It’s counterpart is the bullish “y” pattern.
We recommended puts on Micron, because the character of the behavior of MU’s share price turned negative at resistance (supply). We are looking for a move toward secondary support (demand) in the low-$30s. The price action moving forward will tell us a lot about who the stronger force (buyers or sellers) really is.
I can’t guarantee all my recos will get triggered on the low or go on to reach multiplier status, but I do promise to continue to do my best to find options winners for my great subscribers.
The Midas metal is poised to do well, as central banks and sovereign nations open up the monetary spigots to full. The classic Seinfeld moment above came to mind.
As you can see on my daily candlestick chart below, gold has roared back from a test of the positive influence of its longer-term moving average line. Recent forced selling was met by demand. That is shown by the long and strong red candle lines.
Chart by Steven Sarnoff, h/t stockcharts.com
Neel Kashkari, Minneapolis Fed head, whose name reminds me of “cash and carry” futures trades, who gained fame/infamy for his role in the bailout from the 2007-2009 financial crisis, said the quiet part out loud near the conclusion of his segment on 60 Minutes this past Sunday.
Scott Pelley: To the person who is about to grab their car keys and go to the ATM and take out $3,000, you say what?
Neel Kashkari: You don’t need to. Your ATM is safe. Your banks are safe. There’s enough cash in the financial system. And there’s an infinite amount of cash at the Federal Reserve. We will do whatever we need to do to make sure that there’s enough cash in the banking system.