Bubba’s Equity Portfolios Weekly Update New Trades 9/7/2024

The cash S&P 500 was down 238.75 for the week. Many stocks have changed into a downtrend, but some are still in uptrends.

In other words, one week does not a trend make- but sellers are overwhelming buyers at this time. Price is king and price is declining.

New trade alert

Reverse to short:

AAPL (1A-2A-3A)
CRWD (1A)
SPY (1A-2A-3A)

Amateur traders are always looking for the “why” in trading when they should only focus of the “that” because we don’t know whys- but we do know the that. If a market is making higher highs and higher lows, “that” is the very definition of an uptrend. We usually will never know “why” a market does anything. Most losers in the markets think they must have reasons for making a trade based on all kinds of subjective junk. Not us.

Our method is objective, and 100% rule based. There is nothing to understand other than what the algorithm is telling us. Follow the rules and make money- it’s that simple.

Here is the formula we use

For a Long Position
Buy the at the money Call
Sell a Put Spread starting with the at the money Put and using the recommended
distance for the Put Spread

For a short Position
Buy the at the money Put
Sell a Call Spread starting with the at the money Call and using the recommended distance for the Call Spread

ATM = At the Money
Long Put = Short Call Spread
Long Call = Short Put Spread

Remember the Groups are only updated once a week, although we have new trades during the week, changes to the Portfolios are only reflected on Saturday.