Historic Announcement Made by Janet Yellen + Market Getting Tired Up Here = Short Trade Setup

We have an official change of tune where since the financial crisis we've had oodles of helicopter money dropped into the markets. Yesterday, Janet Yellen officially did it. After nine years of Federal Reserve accommodation, she finally committed to a gradual & predictable reduction of the Fed balance sheet. Yesterday's announcement also included revised inflation expectations down from 1.7% to 1.5% and one less rate hike on the dot plot. Although the market was flat with little reaction, a bird’s eye view of financial markets does suggest that yesterday was a historic. If helicopter money truly does disappear from public markets, they can once again trade as free markets with volatility affixed to catalysts. This new program will begin by rolling off $10 billion in October and increase until it reaches a maximum monthly roll off of $50 billion by October 2018. In the aftermath of this policy shift, common sense expectations caution us to expect a double selloff in bonds and equities ...consistent with the forecast of former Fed Chairman Alan Greenspan. To prepare for such a possibility, our first response is to adjust a rebalancing of our long positions in certain areas & rotate some of that capital as a hedge with the use of SPY &/or QQQ put options. We want to start picking some of these up while we're in this top range. The market doesn't work in absolute lines in the sand" but we will heed certain momentum buy points before we officiate any SPY puts, QQQ puts, and maybe even TLT puts. Our SPY’s purchase point is being raised to any price below $248 from $243 and QQQ’s purchase point is being raised to any price below $143 from $145. TLT puts have already moved below our first momentum buy point of $127. We plan to purchase the first 5% allocation likely on the SPY puts to start some time before the close of the trading day today, September 21st.

In order for this trade setup to trigger, we need to see the SPY look to be closing anywhere under the $248.99. We're also getting negative bearish divergence on RSI values on both the SPY & QQQ on the daily chart. Take a look below:

Until this tune sings, there is no alarm being sounded off just yet. Be patient and do not panic. Market is still a feather away from all time highs. We still give the benefit of the doubt to the buyers. We are still in a bull market. Those are the facts as of right now. But we will be defensive about taking a small nibble on a hedging position and then reward that hedge if the thesis unfolds true to the analysis. Right now we have concerns about the market pulling back more than just a typical -3 to -5% pullback. We could see another -15% scale type pullback heading into the beginning of a fall. Followed by a massive bounce rally that would synch up nicely for the Santa Clause November to December rally for example. Doesn't that just feel reasonable? Feelings aside, we are watching for the triggers that could avalanche such a scenario. We are watching.

Stay tuned.

Some of the greatest pearls shared by Jesse Livermore:

“Money is made by sitting, not trading.”

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

“Buy right, sit tight.”

“Nobody can catch all the fluctuations.”

“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

“It takes time to make money.”

“Don’t give me timing, give me time.”

  • stocktwits social icon
  • Twitter - Black Circle
  • Facebook - Black Circle
  • YouTube - Black Circle

513 Garden St - Studio C  |  Santa Barbara CA 93101       info@bottrigger.com  |   805-825-7777

© 2016-2019 by BotTrigger Inc.

These results are based on performance results that have certain inherent limitations. Each trade is executed in BotTrigger's S-Corp trading account in the BotTrigger portfolio managed exclusively by Mike Saad, founder & CEO of BotTrigger of Lovical Inc & MomentumStockAlerts.com Inc (umbrella corp). The performance results shown in BotTrigger's portfolio may vary at certain times of the day due to our API feeds that pull the current price of open or closed positions from Yahoo Finance.  Although BotTrigger has consistently outperformed the S&P 500 benchmark by more than 50% per annum since inception, August of 2016, no representation is being made & or promised that any account will or is likely to achieve profits or losses similar to these being shown. BotTrigger so far this 2018, is on pace to achieve it's largest annual YTD return now in it's 3rd year since inception. This performance assumption is not promised but is being communicated that so far we have achieved the highest rate of return on a YTD & YOY (year over year basis). If a majority of our trade setups fail to materialize based on our analysis or trade thesis, it is absolutely possible to close below our running 50% average if not negative. BotTrigger may & often times does  implore hedging strategies and/or stop-loss precautions in the event that the BotTrigger portfolio sustains heavy losses that might cause the cumulative net value of BotTrigger's portfolio value to near below our 50% threshhold of YTD gains. Our goal at minimum is to be up YTD by up to at least 50% or greater. In the event the net weighting of our trade allocations drops the entire portfolio value below this threshold, then triggered sell signals are generated to reduce to a sizeable position of cash.

Past performance is no guarantee of future results and may not reflect potential deductions for fees which may reduce actual realized returns. Any historical returns may not reflect actual future performance and any investor on BotTrigger may experience different results from those shown. All our trade alerts are real-time but in some cases may be delayed due to technical delays with our SMS/MMS delivery provider or the speed in which a Member's mobile carrier accepts the depository of our delivered communications and then how soon a Member's carrier may deliver that trade alert/ message to our Members. Delivery times are nearly instant from the time we click "SEND" and often delivered to Member's mobile phones within 10 to 30 seconds; but on very rare occasion that delivery might get bounced or delayed; again this is rare but it has been known to happen. There will be times that BotTrigger's communicated entry is below or above the pricing our Members may receive communication due to market delays or delays with our SMS/MMS Mobile Text delivery provider, EzTexting 

Disclaimer: Neither the SEC nor any state securities commission or regulatory authority approved, passed upon or endorsed the merits of any investment on the BotTrigger platform.

BotTrigger’s services do not constitute “crowdfunding” as described in Title III of the Jumpstart Our Business Startups Act (“JOBS Act”). BotTrigger does not accept any trading capital from Members or any respective parties with regards to BotTrigger's S-Corp under Lovical Inc & MomentumStockAlerts.com

Privacy Statement