🔥 S&P Breaks above 4,000

Welcome back to the Rude Awakening for Monday, April 5, 2021.

The market has just hit brand-new all time highs. We are once again at a NEW highest point in history, with the S&P officially pushing past and holding above the 4,000 level.

So, today, we want to look at a way to prudently hedge ourselves with all of this pushing up and up and up.

Something that I do perennially in my portfolio is have onto a short position in place, cash flowing that by selling cash-secured puts. It’s a way to generate income while waiting for a correction. But its main goal is to balance out my long positions.

One of the questions I’ve been getting a lot over the past few days is this…

Is There a Way to Hedge Against Downturns in the Marketplace?

The simple answer is, no, you can’t make one move to perennially hedge yourself against downside fallout.

But the good news is, there is a strategy you can employ when we see some weakness in the markets.

That’s exactly what I’m going to show you today.

Have a great trading day, folks.

We’ll see you back here tomorrow.


Scott Stewart

Scott Stewart
Editor, Rude Awakening

You May Also Be Interested In:

Don’t Retire Until You Do These 10 Things

: If you’re on the fence about retiring this year, or worried you might be forced into it, we have put together a pre-retirement checklist to help you decide if you’re really ready to make the big exit. The last thing you want is to feel regret about retiring in a hurry. So read this list to avoid mistakes and reduce stress as you consider the next chapter...

Scott Stewart

Scott Stewart has been trading for decades. He has acted as an analyst and educator on the stock market for just as long. As your Rich Dad's Weekly Cash Flow analyst, Scott works tirelessly to ensure you know everything you need to do when entering into new positions, and adjusting trades as you go along....

View More By Scott Stewart