November 2012 was an outstanding month for our portfolio with a 22.2% portfolio return for the month. The Wall Street Proverb "Sell in May and buy in November" worked great for us this year.
Subscribers of record back in November 2011 will remember it as the month we shorted bonds with the TBT bond short trade my biggest mistake of 2011. We took a 6.39% loss for the month of November as a result. Ben Bernake still owes me big time for that one.
This November Hurricane Sandy gave us an amazing opportunity as hurricanes always do and we were well prepared to capitalize on it. 22.2% stands as the best monthly return since May 2012 which was 33.47%.
The big mistake of 2012 was being overweight Gold going into October. Gold took a hammering in October leading to a 13.65% portfolio loss for the month.
I scaled our Gold positions back took the loss and got ready for the hurricane recovery.
After the post hurricane sell off I went long the stock market with Google, Apple and S&P500 options. I also shorted Oil two times, shorted the Yen and took 6 3 day shorts on the S&P500 all these positions were profitable.
We did not have any losing positions for the month of November apart from a few insurance options I took out on the Russell, S&P500 & Apple (whose market cap makes up 20% of the S&P500). These continue to act as a hedge for our portfolio.
For December I expect a strong end of year rally like last year. The fiscal cliff discussions are effecting the markets negatively. However, I do not see anything being resolved until January at least. The end of year rally will overpower the fiscal cliff worries.
I expect some sharp temporary pullbacks during the rally in the market throughout December. I have expanded my strategies to include a weekly 3 day option trade to capitalize on sharp market pullbacks. In the last 2 months we placed 6 trades which were all profitable.
Our portfolio is in a very strong position entering December. The hurricane recovery is far from over and we are ideally positioned to capitalize on the Christmas buying season.
Hedge Fund Managers around the world are all buying into the market now to put the window dressing on their end of year portfolio returns.
You still have a chance to grab a 6 month trial of my video trade alert service for $997.
Action takers will be rewarded.
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