Today is a bull signal (for tomorrows close) and we would normally be buying the SPXL at or near today’s close. I have heard from many of you and I understand why you would want to avoid any more risk. We are holding off of this trade since the market is up today and the volatility continues to persist. After 3 losing trades in a row, we feel it prudent to hold off. After we see a couple of signals confirmed, we will continue trading the system as before. Consider this a form of circuit breaker as we wait for the signals to come back into alignment.
It is true that SPODD500 had three losing trades in a row (which is rare). But, let’s please put things into perspective. SPODD500 is down 4.81% from it’s closing value on 2/28/19; however, On 2/28/19 SPY closed at 296.26 and by 3/16/20 SPY closed at 239.85. That is a drop of 19% since 2/28/19. On the other hand, SPODD500 closed at $66,786 on 2/28/19 and dropped down to $63,571 which is a drop of $3,215 and equates to down 4.81%. You have to admit outperforming the S&P 500 by over 14% during a huge drop off is remarkable, but I totally understand that losing money sucks.
Now, I realize it isn’t great to lose money and it is little comfort to say we are all in this together when you look at what could have been if only…
At some level SPODD500 is a victim of its own success when we can say we lost 4.81% which beats the market by 14.19% and that is considered so bad that 16 subscribers decided to leave. Yet, I totally understand why someone would leave, you have to manage your money the best that you can and I totally get that. But also please consider SPODD500 managed the volatility by cutting the actual percentage of equity invested while still staying true to the signals. We placed stops when the market went against us and we handled the losses the best any trader could ask for and we were successful at preserving capital.
All we at SPODD500 ask is that you keep things in perspective. If you joined us early March because you saw we were up 14%, that should be a clue that trading in SPODD500 is risky and I am really sorry you had to participate in the drop from where you joined. One of the biggest risks of SPODD500 is that we hold overnight – it is a fundamental part of our strategy in that we trade based upon the odds from one day’s close to another. We did our best to disclose this in our description and hope you understand the risks we engage in. We don’t always catch them correctly. But, I expect we will continue to catch more winners then losers.
But let’s be honest here, one reviewer said they would have the same results by just being in the S&P 500. If you look at things objectively, we have clearly outperformed the S&P in good times and in the bad.
I thank you for your business and I want you all to know that the door is always open for you to come back. SPODD500 will be at C2 for a long time to come and it is my hope that you come back before we have a huge run up so we can all participate in the profits together.