Impeachment – What Does It Mean?
Nothing. It is a political tool and is being used by the house to try to remove Mr. Trump from office. Will it work or will it backfire? This is a big move for the Speaker of the house, Ms. Pelosi. She gave up on trying to get the 2016 election overturned and decided to wait as long as she could to get the president removed from office, hoping for a new charge. She got what she wanted when a whistle blower found a tape of Mr. Trump talking to the newly elected president of Ukraine in July.
The basis of the charge lies in the recording. Mr. Trump brings up the fact that there has been horrible corruption in the energy department in Ukraine. The new president replies that he is bringing in his own people to root out the corruption. He hopes that it will further ties with the U.S., as Ukraine’s main ally since the ECU has basically deserted them. Trump pledges U.S. support. He then asks as part of that investigation that Joe Biden and his son be investigated in the corruption charge.
Boom! That’s all the Dems needed to start the process again. They claim the president tried to have the tape put in a file that is marked as a state secret, and therefore he is guilty of obstruction of justice and needs to be removed from office. The process is fairly long so I will just go into how things will proceed. First, the Dems will form various committees to go over the evidence and they will all come to the same conclusion, Mr. Trump must be removed from office. The full house will vote and when it is determined he is guilty, the case will be turned over to the Senate.
The Senate will conduct the trial and the house will serve as the prosecutor. The Senate will choose who they want to represent Mr. Trump. The trial will be a show trial. The Dems will smear President Trump and his Republican allies in the Senate. His allies will support his position that the damming phone call was to promote a stronger bond between the U.S. and Ukraine. Since the senate is controlled by the Republicans and you need a 2/3 of the Senate to agree with the house, he will be found innocent no matter what the evidence says.
The big question will be whether or not Ms. Pelosi committed a political blunder by allowing the impeachment to proceed. She knows the blowback could be enormous and cost the Dems the 2020 election. On the other hand, even though she knows she will lose on the impeachment trial, will the trial move enough voters in the upcoming election to her side of the isle and actually turn out to be a winner. That is what you have to love about Washington politics. There is never a cloudy day!
Ask Mr. Seifert
I am constantly asked questions about trading and how to exploit certain market factors to insure success. Each week we will answer those questions with a short paragraph covering a variety of trading subjects.
Is it possible to sell a credit spread that has less risk than reward?
Answer :Yes, it is possible to sell a credit spread that has less risk than reward. The trade is called a 60/40 and it is an aggressive directional spread. Here is how it works. Normally when we sell a credit spread, we sell the ATM strike and buy a strike that is further out of the money. If you use a 60/40 we sell a spread that is slightly in the money. We are not taking a neutral position. We are trying to predict the direction that price will move. So instead of selling a $500 widespread for $220 and assuming a $280 risk we sell the spread for $280 and assume a $220 risk. We never risk more than the difference between the strikes minus the premium we receive for the spread. The difference is in the 60/40 spread, if the price doesn’t move in our favor, we will not collect the entire $280. We will collect a portion of the spread as a profit. The 60/40 is a spread that many professional traders use when they are confident that the price will move in their favor.
The Market Edge Market Posture
| Market Timing Models | Current Reading | Prior Week | Connotation | ||||
| Cyclical Trend Index (CTI): | 6 | 6 | Positive | ||||
| Momentum Index: | 11 | 11 | Positive | ||||
| Sentiment Index: | -4 | -3 | Negative | ||||
| Strength Index – DJIA (DIA): | 81.0 | 75.0 | Positive | ||||
| Strength Index – NASDAQ 100 (QQQ): | 82.3 | 73.0 | Positive | ||||
| Strength Index – S&P 100 (OEX): | 82.1 | 79.0 | Positive | ||||
The Market Edge ‘Market Posture’, which has been Bullish since the week ending 0913/2019 (DJIA 27219.52) remains Bullish at this time. For a detailed look at the technical indicators and studies that make up the market timing models, go to www.marketedge.com.
The Optionomics ‘Traders’ YTD Scoreboard
| Week Ending: | 11/08/19 |
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| Risk Capital: | $20,000 | |||||||
| YTD S&P 500 % Gain/Loss: | 24.4% | |||||||
| Performance For Week End: | 11/08/19 | |||||||
| $ Total Profit/Loss For Week: | -$75 | |||||||
| % Total Profit/Loss For Week: | -0.4% | |||||||
| Win % For Week: | 50.0% | |||||||
| Performance Since Week End: | 01/04/19 | |||||||
| YTD Optionomics $ Gain/Loss: | $10,019 | |||||||
| YTD Optionomics % Gain/Loss: | 50.1% | |||||||
| YTD Annualized % Gain/Loss: | 57.9% | |||||||
| Win % YTD: | 62.9% | |||||||
| YTD Number Of Weeks: | 45 | |||||||
| YTD Number Of Trades: | 201 | |||||||
| Average # Trades Per Week: | 5 | |||||||
| Largest Drawdown: | $3,715 | |||||||
| Largest % Drawdown: ($20,000) | 18.6% | |||||||
For a detailed track record of both the ‘Traders’ and ‘Investors’ strategies, click on the Scoreboard tab on the Optionomics web site (www.optionomicsgroup.com)
FREE Two-Week Trial Subscription
The option Trades and Strategies offered by the Optionomics Group are unique in that they all have limited risk while creating great leverage. Our basic Bullish – Bearish Credit Spread Trade lets you control 100 shares of a $200 stock, a $20,000 position for less than $500 or 40:1 leverage. Your maximum risk is always limited and our strategies produce winning trades in three out of four possible outcomes. Check out The Scoreboard on the home page to see our results.
Optionomics let you become the casino whereby you have a mathematical edge that enables you to grind out consistent returns. These strategies are designed to produce good returns over short to intermediate-term time frames in any type of market environment.
Optionomics offers a FREE Two-Week trial to its entire web site with no cost or strings attached. Each of the strategies are explained in a 5-7 page booklet which includes detailed explanations and sample recommendations. You can see how the strategies are performing every week by clicking on The Scoreboard tab on the Home page. During the trial, you can paper trade the various strategies and get a feel for the deal without risking a penny. Simply click on the appropriate tab on the Optionomics’ Home page to access the informative booklets and then sign up for the trail. As a special offer, you can download a FREE copy of my latest book, “Trading Options My Way”. I doubt that you have ever read anything like this.
The ‘Traders’ Subscription Includes The Following:
- The Bullish – Bearish Credit Spread Trade: A basic strategy to trading weekly credit spreads.
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- The Blow Off Top – Bottom Trade: A lot of action and big moves too.
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- The 21st Century Covered Call Strategy: A modern day alternative to the old fashioned covered call strategy.
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Each Monday morning by 11:00 EST, the recommendations for each strategy are posted on the Optionomics’ web site. In addition, the updated results from the previous week are posted on the Optionomics’ Scoreboard. I also have a webinar on Thursday afternoon where I discuss various option strategies, what is happening on the trading floors and answer any questions that you may have. Don’t worry if you miss the show. They are archived on the site. Sound Good? Good! You can subscribe to either the Traders or the Investor plans at an introductory special of only $39.95 each per month on a month to month basis with no contract or strings attached. That’s $10.00 off the regular subscription rate ($49.95). If you subscribe to both it is only $64.95 per month. I think you will agree that this is a super offer so give it a try. Go to www.optionomicsgroup.com and get started today doing what the pros do –
“Don’t Buy Them – Sell Them”.
Mr. Seifert