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OK. Market Crashing!

Jim Francis learn to trade

So. Many of you know, I trade.

One of my favorite trades is CREDIT SPREADS. A Cash flow system, the works well in most markets. Win 9 times out of 10. And occasionally need to adjust the trade if the market goes crazy. Which it has lately.

Lots of folks, ask “whens it over?” “what do I do now?”

Now, let me make this clear, I do not have any financial licenses (I did in the past), so I am not giving any financial advice or specific recommendations. As I do not know, if you have 10 bucks or 1 Million. But here are some general kind of ideas, RIGHT now.

  • Cash is a good position. NOT losing, is more important than winning. Early March, I told folks to got to cash.
  • OR do a protective PUT. Against stock positions. Insurance against losses.
  • The bottom will come. Sooner or later, the bottom of the market will happen. I don’t know when, just know, the patterns. Charting, Support and Resistance, and Candlesticks. See some of those patterns below.
  • Lots of great companies on sale. But not yet. But not yet. When we see the bottom, and see the reversal. Then, is the time to buy them.
  • Right now if you are thinking about compares in this down market. I would consider the ones, going to make out like bandits from the illness. Look at companies, that are benefiting from drug testing and isolation. ZOOM, Walmart, BioAmerica, Amazon, UPS, FED EX, Walgrens, KR, GILD. and MDT,
  • If things turn around quickly, Delta, hotels, Google, Casinos, and even restaurant chains will come back. the ones doing really well before the virus.
  • And remember 75% of a stocks value is related to the over market direction. So, a simple plan? Wait for the bottom and buy the SP500 (spy, spx). Perhaps even long term options on those indexes. Since 9 out of 10 mutual fund managers, cannot beat the SP500. LONG TERM.

And of course, go back to Credit Spreads for monthly cash flow.

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