The Builders: Trump, China and the Depot (HD,XLP,XLY,XOM,USO)

When the FBI demanded access to Apple’s encryption technology to unlock the iPhones of the San Bernardino terrorists, we were disturbed.  As far as we were concerned, Apple’s refusal to empower an already intrusive surveillance state was commendable. But others saw it differently.   Donald Trump, for one.   Trump went on the offensive, saying we ought to use ‘common sense’ and give the government what they need to fight the bad guys, to know if there were accomplices, etc. And that would be a great thing – to catch the bad guys. All of them. And lock them up.   But there was something unsavory about Trump’s appeal and his further suggestion that we…

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Staple those Discretionaries! (XLP,XLY)

A broken record.   When I was young, and kids listened to LPs, there was an expression that epitomized someone who droned on repetitively about this or that. We said he sounded like a ‘broken record’.   It wasn’t such a friendly moniker, but for us, it summed things up nicely.   And today, at the risk sounding like the same broken record we mocked in our youth, we feel compelled to repeat the message we’ve been broadcasting for several weeks now.   Again!? Why!?   Well, because we believe that all the ballyhoo currently being trumpeted across the airwaves and over the fibreoptic lines that span the financial world is no more than that…

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Santa’s Good to the Elite (XOM)

We set a lot of trades here at Options Trader Elite. Roughly once a week – and sometimes more – we set a trade that’s the envy of the newsletter world, both in terms of its return and its sheer entertainment value. There, there, Rachel… take your Zoloft, my love. As it turns out, we very often set trades with December expiries. Not exactly sure why, but it just happens to work out that way. And so it was with last Friday’s options expiry, that we now have a bevy of initiatives that either closed down, or that we feel it’s now appropriate to take off the table. And so, without further delay, we ask…

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I only Eat what I Kill (GDX, XLY, SPY)

Worked for a short time with a Mergers and Acquisitions guy who labored tirelessly to put together his deals. He was a solo operator who had maybe 60 or 70 different projects on the go at any given time, and if he succeeded in matching buyers and sellers at least once a year he was beside-himself elated. He was a patient man. He was dogged in seeking out new matches, meeting new people, racing across continents to package together all the details and as sure as you’re reading this – failing… again and again. But he also knew that was part of the game. Like every good salesman, the rule of 99 strikeouts for every…

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Short Term Profits on an Oil Bounce (XLY, SPY, XOM, USO)

We have an open trade that requires your attention. And depending on what kind of personality you have, it could go in two entirely different directions. It was a trade we opened in mid-August in a letter called The Outperformance Game. There, we spoke about the lack of excitement in the consumer discretionary sector; a corner of the market that generally fares well when consumers are confident and the economy is humming without worry. At that time it wasn’t the case, but we suspected the situation would change, and the discretionaries, as represented by the Select Sector SPDR Consumer Discretionary ETF (NYSE:XLY), would outperform the S&P 500. The trade consisted of a long XLY CALL…

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A Return to Regimen (XLY, XLP)

Glad that’s behind us. The world awaits a new day, friends – a new era replete with sunshine and stock market profits and nothing else besides. And that’s precisely what it’s going to get. On face. For in the same way that Nero was said to be fiddling while Rome burned, so the modern equivalent here in America is avoiding that corpse on the sidewalk as you banter with your broker about the latest tech IPO. Step over that body, bro!   With a couple of major distractions now out of the way, the world will have to invent some new ones if the stock market’s going to continue its wild ascent. We’re referring, of…

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Reader Discretion is Advised (XLY)

We’re going to return today to one of the themes we highlighted in last week’s letter and attempt to explore it in somewhat greater depth. For those who wish to go back and review our thoughts of May 15th, the letter was called Horrifying Research Reveals Rally-Ready Market. Now onto business. We were exploring the give and take between the consumer discretionary sector and the consumer staples, noting the relative strength of the staples during times of worry and that of the discretionaries when investor confidence prevailed. We produced for you a composite chart of the two using the Select Sector SPDR Consumer Discretionary ETF (NYSE:XLY) and the Select Sector SPDR Consumer Staples ETF (NYSE:XLP)…

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