בס״ד

1387% in Just One Week! And A Broad Commodity Sector Punch in the Nose! (DBC, QQQ)

Posted on August 4, 2022

Dear friends – Jews and Noahides all…

We’re just days from Tisha B’Av, our national day of mourning for the loss of our Holy Temple – and the Shechina – from the Land of Israel.

And we pray…

That Hashem restores His Dwelling Place to the height of its former glory, as it was in the days of Shlomo HaMelech.

May He also restore the line of David speedily in our days, and bring us our holy, righteous redeemer to rule in peace over Jerusalem and the entire Land of Israel.

!ונאמר אמן

Without it, the entire world may perish.

Now back to the mundane…

We’re trading the commodities today by way of the Invesco DB Commodity Tracking Fund (NYSE:DBC), an ETF slightly overweight the energy sector, but overall a decent proxy for the commodity class at large.

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But before we get there, we have to tend to a massive winner – earned in just a wee seven days!

That’s right; it’s our QQQ initiative from July 28th.  The letter was called Quick and Dirty: Short Term Momentum in the High-Tech Realm.

Quick.

And dirty.

And lucrative.

Recall, that we urged you then to buy the QQQ September 16th 316/321 CALL spread for $2.12 and sell the QQQ September 16th 262 PUT for $2.18.  Total credit on the affair was $0.06.

We also recommended a STOP sell order on the stock at 262 to prevent any runaway loss.

And…

The CALL spread is now yielding a fat $3.06 (15.95/12.89), while the 262 PUT can be repurchased for $0.89.

Dump the first and buy back the second, and you NET $2.23 on exactly NOTHING spent.

Adjusted for minimal commissions gives you a freewheeling gain of 1387% in just a slap-happy SEVEN DAYS!

Remember to cancel that STOP.

And now we move on.

The commodities haven’t made a lot of sense for a long time.

Why?

Because they normally track the US Dollar – inversely.

Yet since December, 2020, the two have been rising in tandem, and we’ve been scratching our dandruff-ridden scalps trying to determine who the hell’s going to break lower first – and when.

And…

Well, friends, the time may now be at hand.

Have a look at the chart for DBC –

G-d bless the believing remnant.

And many happy returns!

Matt McAbby

 

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