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.