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Dear Friend,
This week is an unusual one for the Idea of the Week. For the first time ever, I submitted an article to Seeking Alpha, and this newsletter supplies a link to that report. (My apologies if you came on board because of this article – our regular Idea of the Week will resume next Monday.)
Enjoy the report, and the report inside the article which documents every trade we made in an actual portfolio that gained us 357% after commissions in four weeks this summer.
Terry
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| Option Tip of the Week |
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Two Strategies For Making Extraordinary Returns With Apple Options
Here’s the link – Two Strategies
To accommodate those folks who signed up for our free newsletter after Labor Day because of the Seeking Alpha article, we are extending the special offer we made last week for an extra week.
The Special Offer – To Celebrate the re-establishment of Auto-Trade at TD Ameritrade/thinkorswim, we are offering our Premium service at the lowest price in the history of our company. We have never before offered such a large discount for the Premium Service. If you ever considered becoming a Terry’s Tips Insider, this would be the absolute best time to do it.
And now for the Special Offer – If you make this investment in yourself by midnight, September 11, 2012, this is what happens:
1) For a one-time fee of only $75.95, you receive the White Paper (which normally costs $79.95 by itself), which explains my favorite option strategies in detail, , 20 “Lazy Way” companies with a minimum 100% gain in 2 years, mathematically guaranteed, if the stock stays flat or goes up, plus the following services:
2) Two free months of the Terry’s Tips Stock Options Tutorial Program, (a $49.90 value). This consists of 14 individual electronic tutorials delivered one each day for two weeks, and weekly Saturday Reports which provide timely Market Reports, discussion of option strategies, updates and commentaries on 8 different actual option portfolios, and much more.
3) Emailed Trade Alerts. I will email you with any trades I make before I make them so you can mirror them yourself or have them executed for you by TD Ameritrade/thinkorswim through their Auto-Trade program. These Trade Alerts cover all 8 portfolios we conduct.
4) Access to the Insider’s Section of Terry’s Tips, where you will find many valuable articles about option trading, and several months of recent Saturday Reports and Trade Alerts.
5) A free copy of my e-book, Making 36%: Duffer’s Guide to Breaking Par in the Market Every Year, In Good Years and Bad (2012 Updated Version).
With this one-time offer, you will receive all of these Premium Service benefits for only $75.95, (normal price $119.95). I have never made an offer anything like this in the eleven years I have published Terry’s Tips. But you must order by midnight on September 11, 2012. Click here and enter Special Code Auto12 in the box located on the right side of your screen.
I feel confident that this offer could be the best investment you ever make in yourself. Celebrate the resumption of Auto-Trade at TD Ameritrade/thinkorswim with us. But do it before the September 11th, as this offer will not be available after that day.
I look forward to prospering with you.
Terry
P.S. If you would have any questions about this offer or Terry’s Tips, please call Seth Allen, our Senior Vice President at 800-803-4595. Or make this investment in yourself at the lowest price ever offered in our 11 years of publication – only $75.95 for our entire package (regular price $119.95). Click here and use Special Code Auto12.
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| Andy's Market Report |
It was much of the same for the market this past week.
The low volume, low volatility environment has led to the same old story – little to no directional price action in the major market benchmarks.
The S&P 500 closed the week down -0.3% and the other benchmarks performed much the same. For the month, the Dow rose 0.6%, the S&P 500 gained 2% and the Nasdaq climbed 4.3%, its best monthly performance since February.
There is no doubt that August has brought us some of the lowest volume in years, with this past week seeing the lowest volume all year, but expect that to change quickly.
In fact, I would not be surprised to see volume pick up significantly over the next few weeks as market participants come back from their summer holidays – I can almost guarantee it.
August has left Wall Street with a market that is near record highs, but that hasn’t necessarily been a good thing going forward. In fact, it has spelled trouble for the market in September.
September is already known as the worst month for the market. It is the only month with an average return that is negative (-0.7%). But performance is far worse when the S&P closes the month of August near 12- month highs.
If we look back over the past 80 years or so, this same type of scenario has occurred 12 times in the past. The S&P was only able to continue an August rally once and the average loss before the S&P was able to make new highs again was -4.0%. Moreover, the index took roughly 4 months before it made new highs again.
To put it another way if you bought the S&P 500 at the onset of September after the major benchmark set a 12-month high in August you would have lost a total of 136 points just over the past 40 years.
Certainly not the best performance, but what that should mean for the market is a pick-up in volatility as seen by the VIX (investor fear gauge). The VIX has been trading at very low levels, which means that complacency has entered the market. However over the past week, even with the market holding steady, the VIX has managed to pop over 20%.
It seems that now everyone is waiting on QE3. Will it happen and when? Big Ben gave no clues in his speech on Friday and I expect the same from the next Fed meeting which is scheduled in mid-September.
Next week investors will have the European Central Bank meeting on Thursday. The meeting is expected to take pressure off highly indebted countries.
Comments from ECB Executive Board member Benoit Coeure rekindled expectations for central bank action recently.
I suspect much of the same nonsense. It’s all talk to attempt to keep fears in the market at a minimum. But we all have been privy to the story and nothing has changed. Europe is a mess and we are about to experience a “fiscal cliff” if our own country can get things in order and fast. Last year Congress allowed the market to plummet 11% over a ten day period before pushing the so-called “fiscal cliff” policies back a year. Well, that year is up and now we are right back to where we were a year ago. Once again, I expect to see little to no agreement between both parties which could once again spell trouble for the markets going forward.
One thing is certain, I look forward to next week and hopefully a surge in volume and volatility.
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| Overbought/Sold Condition Report |
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Overbought/Oversold as of September 1, 2012
• S&P 500 (SPY) – 57.2 (neutral)
• Dow Jones (DIA) – 52.1 (neutral)
• Russell 2000 (IWM) – 55.2 (neutral)
• NASDAQ 100 (QQQ) – 58.2 (neutral)
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Thank you again for being a part of the Terry's Tips newsletter. If you are interested in signing up as an Insider, visit Terry's Tips today for details.
Sincerely,
Dr. Terry Allen
Terry's Tips
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