Thursday’s rally, like the previous two days, was driven by investment banks using the Fed’s funding to prop the market. US$ falling due to Fed high funding level & benefiting emerging markets as I mentioned in Tuesday’s call. Read More >>
Dear clients, family, and friends,
I would like to provide you with a quick update to my Monday email. On Monday, we closed out our SPXS position (a triple short position on the SPY) and banked a profit of 63% in 17 days. We then remained 92% cash on Tuesday. Anticipating the $2 trillion CV19 aid package, the market went up substantially on Tuesday and again Wednesday morning. On Wednesday afternoon, I went 90% long on the SPY. Accounts were up on Wednesday and then up huge today, about 6%. Please be aware that these numbers refer to our 100% growth model. If you are in a blend with fixed income, you will have to adjust accordingly.
Last night, the Senate passed the aid bill by a unanimous vote of 96 to 0, with 1 Senator home with the virus and 3 self-quarantining. Finally, an awesome compromise and unity display by our Senators! Thank You, Senators Schumer and Sanders!
Here’s what SHOULD happen next: “House going to gavel in at 9am tomorrow and try for a voice vote. Pelosi and McCarthy said there will be enough members present to pass the bill on a voice vote. Will some object, they can and will submit to the record, but it does not appear at this moment that someone will torpedo the bill from passage tomorrow.” Prior sentence courtesy of my very smart and well-connected son-in-law. Thanks again, ”J” man.
Let’s hope that all Congressmen and Congresswomen, led by Speaker Pelosi and Minority Leader McCarthy, do the right thing tomorrow morning and pass the aid bill. If so, I expect we’ll see another UP day.
As you know, I don’t normally communicate with you this much, but the historic events facing our country have required me to keep you informed as much as possible. I hope I’m not bothering you.
As before, I am sequestered at home, studying the charts, making trades I see fit, sending emails, and speaking on the phone with all of you. Seriously, email me back, or call me! I am lonely!
Jack Reutemann, Jr
Research Financial Strategies