Issue 84: 4 Broken Charts Now 25% Worse than 2008 Crash - Masters in Trading Digest

4 Broken Charts Now 25% Worse than 2008 Crash

Welcome to Issue 084 of Masters in Trading Digest.

These are unprecedented times for the stock market.

The energy complex is a perfect example of volatility forcing lifelong relationships to break down.

Today we look at 3 charts to share just how RISKY these markets are, and then at the end, an offer for how we can help. 

These are not normal times, and today’s MIT Digest provides perspective on the scope of market risks.

Let’s start by taking a look at the relative value movement that has taken place during 2022 in the Energy complex. 

Check out the 20yr 1d chart, chopped up into yearly cycles.

The intention of the above chart is to share how volatile this sector has become relative to years before.

Spreads between Energy products have exploded in 2022 relative to other years. 

Energy products vs the benchmark /ES too have moved up the most ever. Buying energy futures and selling /ES futures has been a massively profitable spread trade during 2022.

The next chart shows a basic spread between S&P 500 Futures and Oil Futures.

If you would have purchased 1 /ES Future 5 years ago (at the beginning of the chart), while also simultaneously selling 1/CL Futures contract (oil)…

We have great news because your trade would finally be at breakeven. (the numbers on the right side of the chart is the profit/loss of the trade)

The next chart shares just how much the S&P 500 Futures have moved relative to years before.

/ES outright is sitting at the lowest $ P/L of any year. 

Even lower than the bottom of 2020. 

The lowest level during the 2008 crash was around -36k (-720 /ES points). The 2020 low was -50k (-1000 /ES points). The low this year reached -56k (-1120 /ES points), and currently sits at -48k (-960 points).

Now we see the movement around the crash of 2008 and the years after.

These are unprecedented times, and the risks in the market are very real.

MEMBER NOTES

we hope that you are enjoying the holiday weekend.  

This week's option trades will be shared Monday, and our live trading session will be held Tuesday, at 11:00 AM EST.

We trade ideas daily in our Discord community with options members.

If you want to learn more about our Options Membership, we share exactly why you want to “Follow the Smart Money” in this presentation. 

Masters in Trading Digest - Issue 84

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FINAL THOUGHTS

WHAT TO EXPECT IN THE NEXT MIT DIGEST

In case you missed it, here are 5 Trading Secrets Successful Options Traders Use to Find Low-Risk, Winning Trades In Any Market

… please take a few seconds to download this report below, right now before it expires.

We eventually plan to charge money for this report, so do yourself a favor and download it now…

That way, while others are searching for their credit cards, you’ll have a free copy sitting on your computer.

That sounds like a square deal, right?

The 5 Trading Secrets Successful Options Traders Use to Find Low-Risk, Winning Trades In Any Market.

As always, share your feedback on the Digest and keep up with the fantastic suggestions for upcoming issues.

Until then, trade smart and always manage your tail risk.

Thanks for reading,
Jonathan Rose

P.S. Don’t delay your decision for much longer.  Because like I’ve been saying, this free resource is only available for a limited time.  Here’s a sneak peek of what you will learn: 

  • CBOE Market Maker shares the reality behind how market makers value options – an important perspective for all traders. (Page #06)
  • How to quickly find the odds to see if your option position will become profitable – this is a must-know. (Page #12)
  • Position Management Tips – Imagine turning losing trades into winning trades and now learn about Scalping Gamma (Page #11)
  • The little-known trick professional traders have been using for decades to simplify the analysis of any options position… even if it’s weird, confusing, or complicated (Page #19)
  • Express yourself as intended – Are you Bullish, Bearish, Long Volatility, or Short Volatility?  This resource is meant to be saved. (Page #21)

 

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