Good Tuesday morning. I am back from around the world, man.
My standing orders before I left were sell the rips and do not buy any dips. That is going to keep going for a long time. Hopefully everyone closed that bear put spread.
Getting closer to screening Maverick and showing 15 minutes of No Fallen Heros. It got huge reviews out in Colorado. Need everyone to go to our Facebook page and give us some likes so that the page gets some traction.
Weapons being sent to Ukraine are drawing down on the US stockpile. Raytheon cannot keep up with the replacements. The US has not bought any in 20 years! Congress is concerned about stinger stockpiles. Was not bullish on defense stocks before but I am now.
McDonalds is a recession-proof stock so that is one to buy now if you are buying stocks and not just trading options.
When you hear Paul Tutor Jones say you should be in stocks it is shocking. The smart money called it wrong before and they are calling it wrong now. When things change you need to change your mindset. The supply chain issues, fertilizers, a nightmare. Food shortages. Fed will cause a recession as they try to stem inflation.
We are finally seeing bad earnings news. The market is going down and there is no end in sight in at least the near term. This is the end of the euphoria phase of the market.
Meanwhile what am I bullish on? Paramount. They just reported lower earnings on lower ad revenue but that will not make a difference in 24 days when Top Gun II comes out. It will be a billion dollar movie in America and around the world. And, Paramount plus has a lot of good content. I would get bullish on Paramount.
As the war in Ukraine goes on Russia is not making any progress and is just blowing up civilian stuff. Anyone tell me why they would not start to use nukes. With that in mind look at the CBOE VIX and get long volatility.
Having said that volatility might go down. We will have up and down volatility as the market falls. When it is a shit show and everybody knows that it is a shit show volatility goes down. When the market is predictable, good or bad, volatility goes down. That will continue baring something awful like a Russian nuke.
Something weird. It is a month long war and both sides are running out of weapons! That is why China scares me. They have cannon fodder. They will send a billion troops in swarming attacks.
Have a great rest of your day. Happy hunting. Make sure you hedge and God bless.