We have recommended that clients take profits on two recent trades. These trades were both made using the real time trading reports offered by Stock Traders Daily.
The first trade was short the double-short long term treasury ETF (TBT). This recommendation was to short from near $69. Clients have recently been advised to cover that short position, which has recently been as low as $58. This was an excellent trade, but we should not be greedy and we should not look back after securing gains.
Shorting TBT is similar to buying the long term Treasury, but instead we were short the short based ETFs. This is also 2x short and it has deterioration, so it offers more bang for the buck, but the underlying notion is that bond yields may be less attractive at these levels than they were when we initiated this trade in February. I am not recommending a buy of TBT, just to cover the short and secure gains.
The second trade was to sell Apple (AAPL). About two weeks ago I issued a buy recommendation on Apple at $392. This trade was based on the real time trading report for AAPL issued by Stock Traders Daily, and according to that same report our price target has now been achieved. Therefore, I have also recommended to clients that they take profits from AAPL. The stock was recently trading at $451, and although I recognize the temptation some might have the objective of a proactive approach is to secure gains and not hold on for the long term, so that is what we are doing.
Purposefully, and in line with the underlying risks that I believe will eventually come back to haunt this market, the proactive approach is not only advised but given the recent aggressive market moves it can be highly profitable. These were each great trades but they are now behind us.