Trade Alert - (SDS) March 27, 2020

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Trade Alert - (SDS) - BUY

BUY the 2X ProShares Ultra Short S&P 500 (SDS) at $31.15 or best

Opening Trade

3-27-2020

Portfolio weighting: 10%

Number of Shares = 320

We have just enjoyed a massive 43-point rally off the bottom on the S&P 500 (SPY) during the last few days.

Given that I believe that the number of US Corona cases in the US could soar from 86,000 today to well over 1 million in the coming weeks, I believe a shot on the short side here is justified, at least on a short-term view. Deaths will skyrocket.

We are about to see a parade of the worst economic numbers in history. How will the market react? Not good, not good.

This position also has the advantage in that it hedges our existing long positions in the (VXX) puts, our short volatility positions.

I am therefore buying the ProShares Ultra Short S&P 500 (SDS) at $31.15 or best. This is a leveraged 2X ETF, meaning that it will rise at twice the rate that the (SPY) falls.

Don’t pay more than $33.00 or you’ll be chasing.

This is a bet that the S&P 500 will fall.

Here is the specific trade you need to execute this position:

Buy 320 X (SDS) at………….…………………………....……$31.15

Net Cost:………………………….………..…….…….….........$9,968

Dollar cost = (320 X $31.39) = $9,968

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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