Trade Alert on Risk Control

In the wake of the Federal Reserve?s decision not to taper and to leave interest rates unchanged, our long positions are soaring and our short positions are collapsing.

No surprise here, as both the Mad Hedge Fund Trader and the Mad Day Trader nailed the market?s reaction well in advance with a profusion of timely Trade Alerts over the last few days.

Treasury bonds have cratered, with the (TLT) down a full point. The short Treasury ETF (TBT) has gapped up nearly a point and a half. The S&P 500 (SPY) is down 1.5 points, while the Euro has given back nearly a penny against the US dollar.

Both our RISK ON/RISK OFF positions are working at the same time. As a result, we are seeing a surge upward in the performance of the Trade Alert Service model portfolio. More than half of the potential profit in all our existing positions can be realized on a mark to market basis.

If you want to book a day trade or an overnight profit here, go ahead and do so. You don?t get windfalls like this very often. Sit back and smell the roses.

As for myself, I am going to hang on a little longer. This makes it much easier for me to run the entire book into expiration, only 12 trading days away, which was the original plan.

To refresh your memory, here are our current positions below: