Posted December 09, 2020
By Scott Stewart
How to Capture Quick Gains, Every Weds @10:30
Welcome to Rude Awakening for Wednesday, December 9, 2020.
The market keeps on chugging higher
The SPX, which tracks the S&P 500, still up around that $3,700 level. The NASDAQ a bit behind today, but still near all time highs, similar story with the Dow and Russell 2000.
Today Ill focus on some recurring trading ideas for you, for current market conditions.
And, at the end, Ill even give you a trading idea using options, if youre interested
Your New Weekly Oil Trade
This is something I trade almost every Wednesday is oil inventory numbers.
These numbers come out every Wednesday at 10:30 am ET, and this reporting almost always moves oil in a big way.
And this means you can almost always catch a ride for quick profits!
One way to do this is using the United States Oil Fund, LP (USO).
You can see that this morning, the 10:30 report caused a big drop.
You can also mimic the same sort of trade using the futures market contracts. Thats the Light Sweet Crude Oil Futures, or Crude Oil Jan 21 (CL=F).
This gives you a bit more leverage than trading straight stock on USO.
I would recommend you put this on your weekly watchlist for Wednesdays at 10:30 am ET, for a chance at quick recurring profits each week.
Hedge Trading on the Most Overextended Index
Next for you, we have a hedged trading opportunity on the same index we talked about yesterday
The ETF that tracks the Russell 2000: IWM.
There is no index thats shot any higher than IWM. It has been on an absolute tear, with a massive move to the upside.
These types of moves are never sustainable. We know there will be a correction coming.
How could you hedge a trade on this index for profits on upside and downside movement?
Im going to show you a structure for this, one that I use and one I think youll like.
Just take a look at todays video to see it all laid out
And thats it for today, folks.
Well talk tomorrow!
Scott StewartEditor, Rude Awakening