Bubba’s Equity Portfolios Weekly Update No New Trades 6/8/2024

The S&P 500 was +68.79 for the week closing at an all-time high. Regardless of the pervasive bearishness by many- they are wrong and if they used their money to short, they are in a world of hurt.

Trying to call market turning points has bankrupted more traders than anything in history. If you respect price and you are long, price has made you a lot of money since the lows in October 2023. There are far too many bears for a market trend change. They will get bullish at some point in time, and that is likely the market top.

The Model Portfolios had mixed results for the week. 1A had a decent gain, while the other two had modest losses.

*There are no new trades*

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 6/8/2024

1A – 25K

2A – 18K

3A – 8K