Bubba’s Equity Portfolios Weekly Update No New Trades 4/20/2024

The cash S&P 500 was -156.21 for the week. We told you over and over that the first thing that needs to happen to get a trend change from up to down, is for stocks to stop going up. We stopped going up on 3/21 and it has been mostly downhill ever since. We are in a confirmed downtrend as per our trend algorithm.

This week, all three of the Model Portfolios made new a new closing weekly equity high for the year. Who can say that of all the gurus, investors and stock pickers out there that are still wedded to buy and hold? Soon at this rate, they will be down for the year while we trend followers are wildly profitable.

Remember, we only need a few big moves a year to make the big money. We are able to ride these big moves from beginning to end because we follow what the market is doing. We do not pay attention to news, forecasts, fundamentals or anything other than price action. Price is reality.

*There are no new trades*

We rely on price and only price and this accounts for our long term profitability. Simply go with the flow and you will prosper regardless of everything else that goes into what makes markets. Price is reality- not trader’s opinions or forecasts.

We never know the exact date when the drawdown ends and we re-start the profit motor and make new highs. If you are not in the market, you cannot expect to make a profit.

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. 

New Portfolios 4/20/2024

1A – 25K

2A – 18K

3A – 8K