THE VSI IS FLASHING RED!!
AND I THINK I SAW AN ISLAND REVERSAL
ON MARCH 1st, THE DAY AFTER THE PRESIDENT´S SPEECH.
IT IS TIME FOR THE MARKET TO GO DOWN!
BUY PUTS AND BUY THE VIX
March 8th 2017
Reach me at: firstname.lastname@example.org
THE VSI IS FLASHING RED!!
Well they didn´t go to 13,000 yet but I think all the shorts are covered, again. You know you can make 5 to 10 times more, more money; 5 to 10 times faster being short in a Bear Market than you can being long in a Bull Market.
I said that the first week last June was the start of a new Bear Market and that the next rally after a 2,000-point drop was a Bear Market rally, followed by a 3,000-point drop, and I think this last rally was also a Bear market trap. If it is, the next sell- off could be down 4,000 points, all toll, the shorts will have made 10,000 points on the Dow, but wait till we go to 13,000 Dow.
Remember, in Bull Markets you buy the dips, in Bear Markets you sell the rips. Easy game.
Let´s check our Short list:
OEX Down -120 pts+
PCLN Down – 450 pts
AMZN Up, lost money
IBM Down -50 pts
GOOG Up, lost money
TSLA Down – 180 pts
NFLX Down – 35 pts
AAPL Down – 35 pts
VIX Up 35 pts
I would buy puts on this same list- except AMZN, wait 2 days, they had great earnings- keep in mind when you go short buy puts. Because the most you can lose by buying puts is the price, you paid for the puts.
If you short a stock and it goes up, your loss can be unlimited. If you do short a stock, buy slightly out of money calls, this will limit your loss.
Being naked short you can lose the ranch, really. Ever since options started trading in the mid 1970´s I am shocked whenever I hear someone has lost a bundle of money, there are so many ways to protect yourself with options.
I think the e-mails I got from my readers, kind of sums-up how they are doing.
The first one is scary:
“Hey, Market Call Anastasi, if the Dow doesn’t go to 13,000 like you keep saying, one night you are going to see a few dark vans parked in front of your house and driveway with mean looking guys inside.”
Well, I live in Peru, that´s a long drive.
The next one I should have saved, printed and framed, he says:
“I don’t believe I made $ 500,000 on the 25 puts. I´m giddy laughing, I made a boat full of money on Priceline and I buy a boat, I mean a container ship. It is the first time I ever bought puts or an option.
I felt like that 70-year-old woman from Wisconsin who for the first time in her life, she bought one Lotto quick pick ticket and won the lottery the next day. Who knows if I had listened to you about the rally only being a Bear Market trap I could have made 300 or 400 points instead of 200 points… Thanks Market Call Anastasi…”
The majority of the e-mails all said they were happy they sold all their stocks in June at the Bull Market top and that they made money buying puts.
As for the mean looking guys in the dark vans:
If you spent more time, reading my blogs maybe you would be driving “Vettes and Vipers” my two favorite cars. Just remember this blog was intended for friends, family and relatives because it´s easier than constantly calling from Peru and Yes. I have a disclaimer; it reads:
“If anyone is dumb enough to listen a poor Italian kid from South Philadelphia, they deserve to lose money”
I won´t get bullish until the Dow breaks 18,200 on the Upside on large volume. The total daily volume of stocks has been declining.
Not a good sign and earnings of companies have been declining. All I see is bad news everywhere.
I keep about 15 market internals every day, 4 times a day. At 10.00, 12.00, 02.00 and 04.00 O´clock, and I will admit some of them are starting to look a little better. If the Dow should break 18,200 on the Upside and only on a large volume, sell your puts fast for whatever they are trading at. I would be shocked if that happens.
Sunday Nov 15th
PCLN down -138 points on Monday Nov 9. But up +25 points the Friday before.
Some of my readers can´t believe they made 100 points in one day. PCLN has been on my list of stocks to Short or Buy puts on.
The next leg of the bear market began last week and may continue till the yearend tax selling period.
Buy the VIX and keep buying puts.
To those readers who are asking if we are getting close to a buying area in gold. The answer is NO. I don´t see a bottom until 850 or 900.
I am sorry to see one of my predictions come true. 3 months ago some of our military and politicians said ISIS was slowly being wiped out. I said: “No, they are just getting started to grow”
I think the events in Paris this weekend prove that I am sorry to say: “THESE HEARTBREAKING EVENTS are going to get BIGGER and more FREQUENT”.
I hope I am wrong.
It’s all over. Remember this date. Big correction starting now: 2 p.m. Tuesday afternoon June 24th. Stay in touch for next update. Stock market is not rigged, if it was rigged and it has been going up for the last five years, who would give a shit if it was rigged. Following blogs will explain why psychology is 90% of this game, it has more to do with instinct and market feel, the other 10% to me is useless I will leave that to the MBA’s and Quant guys to argue about. In the next few days we will talk about BH – BS. (Too many black swans) (Bull Markets do die of old age and so do Bear Markets) Love from Peru.
WHO IS MARCELLO FRANK ANASTASI
Worked 35 years in Wall Street as a Risk Arbitrage Trader at A.G. Backer and Bank Paribas North America, now retired living in Peru but he can’t get the game out of his system because he loved it so much and he still does. Buy Puts sell Calls get out of Stocks and have a nice summer!
“The reason I started this Blog is because just as I called the New Bull Market in August 1982 due to a Business Magazine article which claimed that equities are dead this pissed me off. Today I am just as pissed off because for the third time in as many weeks I have read some jokers saying that the Market is now going to 30,000, 40,000 and even 50,000. If you still believe in BH, Buy and Hold just ask the guy who bought GE at 70 or the guy who bought Sun –Micro Systems at about the same price (60 or 70) and you might hear aloud roar in the room BS. Miss my Kids in the States Talk to you soon! “ M. Frank Anastasi In case you think I am crazy contact me and tell me so at: email@example.com