C.O.B.R.A. System Sell Alert: Exit Your Euro Calls

By Dan AmossPosted July 30, 2021

FXE was a positive reversion trade on July 1. At the time, its 50-day CCI reading was low enough that our system flagged it as oversold. Nearly a month later, the oversold condition has been resolved by a sideways movement, not a strong rally. Despite burning a month of time, we can exit the position now at only a small loss.

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Jim Rickards’ Tactical Currency Profits

Dan Amoss

Dan Amoss, CFA, tracks aggressive accounting and other red flags that markets miss. He’s a student of the Austrian School of economics and Daily Reckoning fan since 2000. Agora Financial relies on Dan for macro market commentary as well as profitable plays like his 2008 call to readers to buy Lehman Bros. puts, which...

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C.O.B.R.A. System Buy Alert: 60% Upside In Germany ETF Puts

By Jim Rickards and Dan AmossPosted October 22, 2021

EWG is clearly priced for a strong recovery of the German economy from the pandemic slowdown. Unfortunately for Germany (and the world), economic growth is not unfolding the way the market seems to expect. Using the C.O.B.R.A. system, Jim and Dan recommend a short position in EWG. This ETF tracks the performance of the MSCI Germany Index composed of German equities. With an economic slowdown, put holders will profit.

C.O.B.R.A. Buy Alert: A Trade With 40% Upside in Japanese Yen

By Jim Rickards and Dan AmossPosted December 8, 2021

In the past year, the yen has had a precipitous decline against the U.S. dollar. This decline has been reflected in the share price of FXY. But there are signs of changes in the Japanese view of monetary and fiscal policy that could presage a stronger yen. Using the C.O.B.R.A. system, Jim and Dan recommend a long position in this ETF that closely tracks the USD/JPY exchange rate and will make significant gains on a yen rally with its favorable current entry point.

C.O.B.R.A. Alert: Take Profits On iShares China Puts

By Dan AmossPosted June 14, 2022

FXI’s overbought condition in the middle of last week has quickly reversed. It was part of the brutal global selloff in yesterday’s trading session. Now is a good time to take profits after only holding for less than a week.

C.O.B.R.A. System Buy Alert: Trade For 60% Upside in Taiwan Puts

By Jim Rickards and Dan AmossPosted November 24, 2021

The supply chain crisis has made consumers and government officials acutely aware of supply dependencies. When depending on foreign companies to supply critical components, plans to onshore manufacturing accelerate. Jim and Dan recommend put options on this ETF of large-cap Taiwanese stocks as geopolitical tensions and supply chain disruptions are a catalyst for U.S. onshoring plans from competitors and a hit to its share price.

C.O.B.R.A. Sell Alert: Take Gains On EWG and FXI Puts

By Dan AmossPosted February 15, 2022

With German stocks being impacted by higher energy prices, our EWG puts have risen to a nice exit point. So, let’s take gains today before its expiration this Friday. Also, FXI has sold off sharply due to the Russia-Ukraine conflict. It’s oversold, so we will watch for another potential trade. For now, let’s take quick profits on this position after only holding for a few days.

C.O.B.R.A. System Buy Alert: 50% Opportunity in FXI Puts

By Jim RickardsPosted July 13, 2021

The Chinese Communist Party (CCP) has declared war on its own companies, especially large tech companies. These companies and others included in the iShares China Large-Cap ETF will be subject to continual harassment and negative shocks. Using the C.O.B.R.A. system, Jim and Dan recommend a short position in FXI as a combination of tech wars and currency wars is a recipe for a drawdown in the FXI price.