Last week’s avalanche on Wall Street provided some opportunities for Rick’s Picks subscribers to make easy money, always with risk tightly under control. Although there was fear in the headlines, the 24/7 chat room was cool, calm and even jocular at times. Click here to join in the fun for two cost-free weeks. One reason some subscribers were feeling light-hearted while millions of investors were getting pulped is that they had taken my timely recommendation to buy call spreads in VXX, which tracks short-term volatility in the S&P 500. Because this particular trading vehicle rises when stocks fall, it quickly doubled, then quadrupled in value as stocks began to plummet early last week. The original recommendation went out on September 28, airing on the Rick’s Picks Facebook page the same day under the headline Leveraging an October Disaster with Cheap Calls. Sound enticing? It was — and easy, too. One need only have bought soon-to-expire October 30/35 call spreads in VXX at the recommended price of 0.50 or less. It traded down to 0.21 over the next several days before taking a powerful leap that increased its value more than twentyfold by week’s end.
Rick’s Picks trading ‘touts’ are for educational purposes only. Past performance is no guarantee of future performance. (See full disclaimer at https://www.rickackerman.com/)
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Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.