NOW AVAILABLE (actually, they will be ready on Tuesday, December 16) – The Mighty Mesa: A Tested Options Strategy Designed to Never* Lose Money (and Just Might Make 36%) my new 224-page book that describes the strategy in detail.
A 10-year back test of SPY volatility showed that there was not a single 12-month consecutive period when the strategy would experience a loss, including the October and November 2008 meltdown, and there were average gains of over 36% a year. You may recall that the actual portfolio we created in July to test the Mighty Mesa Strategy has made a gain since it was started, having survived through two of the worst months in market history.
If you order by Christmas Day, I will send along two books for less than the price of one – both The Mighty Mesa: A Tested Options Strategy Designed to Never* Lose Money (and Just Might Make 36%) and Making 36%: Duffer’s Guide to Breaking Par in the Market Every Year, In Good Years and Bad.
Both books for only $12.94 including first class mail - http://www.Making36percent.com - use the discount code TEE. Order one book and get two for one price. This offer will not be repeated after Christmas.
The second Christmas gift idea is a little whacko – it’s called an Alligetter, and it is the perfect little tool to get anything out of your garbage disposal without getting your fingers wet. It even has a light so you can see what is stuck in the disposal. You can get an Alligetter for $19.99 at www.Alligetter.com. A friend of mine invented this neat little gadget, and I can tell you from experience that a woman will believe you really love her if you give her one.
If the economic news wasn’t bad enough, the market was hit with an additional onslaught of earnings
warnings from a diverse group of leading companies including Fed Ex, 3M, Texas Instruments, Kroger
and Electronic Arts.
Furthermore, additional layoffs were announced at Dow Chemical, Bank of America and numerous other
major U.S. companies.
If that wasn’t enough the market was told after the bell Thursday that the Senate would not approve a
bailout of the automobile industry. I think we all know the potential consequences that the economy faces
(at least on the job front) if the automobile manufacturers have to file for bankruptcy.
Yet, in the face of all the aforementioned bad news the market was able to hold steady and even make a
few gains in the higher-beta indexes like the Russell 2000 and the Nasdaq 100.
"It's hard to say if this is indeed the beginning of a recovery, but it could be," said Matt King, chief
investment officer of Bell Investment Advisors. "It seems like the past few Fridays we've ended the week
on a positive note."
On a technical basis, I am encouraged by the positives that have recently moved into the market. For
one, the S&P 500 continues to display strong support at the 850 level. I have mentioned the importance
of this level over the past few reports.
Also, on a seasonal basis we are entering one of the strongest periods of the year for the S&P. The last
few weeks of December are historically very strong and I think if the 850 level holds, especially if they
bounce sharply off oversold levels then I think the potential for a multi-month rally just might be in the
cards.
Testimonial of the Week: I wonder if you remember when I boasted to you that I was switching my wife’s IRA from American Century Fund to an options account using your strategy, and that I would turn her $65,000 into 100K within a year? This morning her IRA is $103,800. If it was still in AmCentury it would be about $45,000. The spreads were always invested in SPY very similar to your original strategy/or similar to your current "Big Dripper” portfolio.
My traditional, CONSERVATIVE, retirement rollover IRA/Pension accumulated over 30 yrs with 40% bonds and 60% stocks is down by 36% over the same period of time, while all seven of my option portfolios have a gain of some kind.
~ Fred Ryland