C.O.B.R.A. Sell Alert: Sell Expiring Japanese Yen Position

By Dan AmossPosted January 20, 2022

Our bullish yen position recovered much lost ground in recent trading sessions, but is fast approaching expiration this Friday, Jan. 21. Our option hit a low of $0.80 on Jan. 4, and has since rebounded to $2.20, which has minimized the loss on this trade. The yen may continue rising, but we are close enough to option expiration tomorrow afternoon that we recommend selling now.

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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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Buy Alert: COBRA Signals Another Opportunity in FXI Puts

By Jim Rickards and Dan AmossPosted June 8, 2022

China’s economic outlook looks bleak with a stupendous mountain of corporate, provincial, and bank debt that is completely unsustainable. Even if that debt does not come crashing down in the near future, it definitely acts as a drag on growth. Using the C.O.B.R.A. system, Jim and Dan revisit a short position in the leading ETF that tracks the performance of major Chinese stocks as the best way to capture profits on an expected drawdown in Chinese equity markets.

C.O.B.R.A. System Sell Alert: Take a 97% Gain on FXI Puts

By Dan AmossPosted July 27, 2021

Late last week, the Chinese government cracked down on for-profit education companies. The action chilled sentiment toward Chinese stocks, which are all heavily influenced by government policy. The net result has been twice the expected return in half the time for our puts. Now is a great time to take profits.

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

By Dan AmossPosted May 6, 2022

In yesterday’s portfolio update, we noted that Taiwan Semi reported decent first-quarter financial results. The stock has been weak since then because guidance was tepid. Yesterday’s NASDAQ crash took EWT along for the ride. Our technical indicators for EWT are now oversold, so now is a good time to exit puts.

C.O.B.R.A. Buy Alert: A Signal on Euro Calls For 50% Gains

By Jim RickardsPosted July 1, 2021

Currently, interest rates in Europe are mostly negative and near all-time lows but steady, while U.S. rates are coming down fast. That makes U.S. capital markets relatively less attractive and drives global capital allocations in the direction of Europe. The euro can be expected to gain based on those flows and that’s good for holders of long positions in today’s recommendation. Using the C.O.B.R.A. system, Jim and Dan recommend a long position in FXE as lower yields in U.S. markets mean a less attractive dollar, more attractive euro and potential gains for this ETF.

C.O.B.R.A. System Buy Alert: 40% Upside in Dollar Index Calls

By Jim Rickards and Dan AmossPosted August 2, 2021

Dear Tactical Currency Profits Reader, Our recommendation for August 2, 2021 is a long position in the Invesco DB Dollar Index Bullish Fund (NYSE: UUP). The dollar may head lower in 2022, but for now there are strong capital flows toward the dollar for reasons explained below. This recommendation is counterintuitive to some. U.S. growth...

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

By Dan AmossPosted April 25, 2022

In a little over two weeks, we have had a nice gain on our EWY position. Samsung (a major component of this ETF) will report earnings later this week. It might spark a bounce in the stock. Let’s sell this position now and watch EWY for another high-potential trade setup in the future.