MAR 27 – FRIDAY MARKET COMMENTS

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 >>

Special Message From Jack Reutemann

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 240-401-2355

 

Jack Reutemann, Jr
Research Financial Strategies

Client Email

Dear clients, family and friends,

As a follow-up to last Monday’s email, I want to thank the dozens of people who wrote back with praise and thanks. Last week saw a 15% drop in the S&P 500. Meanwhile, our SPXS position shot up almost 45% for the week. The position currently enjoys a profit of 63% in just 17 days. 
 
Also, as I write this, it appears that the Administration and Congress will reach a trillion-dollar stimulus package before the end of the day. We have certainly been tricked and disappointed in the past, but this time let’s hope they have put politics aside and do the right thing for our country. 
 
I have made the difficult but prudent decision to exit our SPXS position and protect our epic profit of 63%. Remember the old saying, “Pigs get fat, hogs get slaughtered.’’ It’s in play right here, right now.
 
Tomorrow brings us another day, and our process will allow us to make the right decision. This may be just a few days of hiatus of green over red, and then back to more sell off.
 
Right now we need to be praying for the millions of Americans in the travel, hotel, restaurant, retail, manufacturing, and service sectors who have lost their jobs—many may be permanent. Most of them were living “paycheck to paycheck” before the Coronavirus reared its ugly head. Now I shudder to imagine the hardships they face.
 
All of my comments from last Monday remain in play. Federal money will help dislocated employees and small businesses in the short term. But the damage to GDP and consumer confidence will require months to repair. You know anybody looking to buy a restaurant or a hotel? I don’t think so.
 
Pray for our great country. Worst case scenario is this is a replay of the 1918/1919 Spanish flu. 
 
Please write back or call me to talk. I am sequestered at home as is most of our staff. I have nothing to do but send emails and speak with all of you!  
 
Seriously, don’t hesitate to call me. I am here for YOU.​
 
Jack  240 401 2355 
 
 
Jack Reutemann, Jr
Research Financial Strategies​