Third February Trade

The following information is for educational and entertainment purposes only. Rio Verde Trading and the author make no claim that anyone can or will achieve similar results in their trading.

A trade setup in IWM, the ETF which tracks the Russell 2000 futures contract, occurred Thursday February 23. Friday, the 24th, IWM market action confirmed the trade.

February 24: Bought to open 40 IWM at 138.66, net $5,548.40.
February 27: Sell signal, sold to close 40 IWM at 139.90, net $5,594.00.
Net Profit $45.60, ROI 2.55%.

2017 is starting out to be a good year. The market volatility is what makes the difference and I expect this volatility to continue. I am still anticipating the real possibility of a serious market correction. See the many articles I link to on the Home Page by Faber, Greyerz, Cashin, Leeb, Stockman and many others, all predicting a serious market correction. As Doug Casey would say, just because something is inevitable does not mean it is imminent.

So I continue trading, keeping the size of my trades small so that a serious loss will not hurt too much. I am also short the S&P 500 and heavily invested in gold and silver mining stocks, which are out performing everything.

It is also encouraging to remember that The 74% Solution trading system performs best in bear markets. It is an excellent contrarian trading strategy, so bring on the Bear!