We’ll be transferring all content to our new site at http://thedrummondreport.com …

Our new hosting site is ready, so all future posts (unless further notified) can be found at http://thedrummondreport.com/ . It is confusing to many readers to have two sites with the same content, as well as time-consuming for the Capt., so we hope our transition to our new host will not cause any inconvenience on your part.

Our new host permits extra “add-ons” such as videos and other commercial content which we think will improve your success, so this is the main reason we are going with it.

Just click http://thedrummondreport.com/ and join us there! If you have any questions or comments, please send them to us at robertsdrummond@yahoo.com.

Cheers!

The Capt.

Recap of Our SPX Trade

Our post on “Buy to Close one-half of our short strikes at 1405” did not post on thedrummondreport.com site when we made our first adjustment around 1 pm today. This post should have appeared before “Sell to Close an equal number of long strikes at 1410”. Somehow, the upload did not go through, but it did appear on our WordPress.com site (the one you are reading now).

If you did not make the trade, then you are fortunate for not placing it since the SPX closed below our short strike at 1405 by about one point (Now that was too close!), giving you a full 7% profit on our two-day trade!

For those of you who “played it safe” as the SPX inched closer to our short strike late this afternoon (yep … the Captain included!), we suffered a 2.28% loss on this trade.

To my faithful First Mate, Josh, who stood his ground, never wavering against doubt, faithful to the 4 pm “dong” of the market’s close, gallantly fending the fears of utter loss and abandonment by the crew, may I say … inexperience has its luck! You’ve bagged a 7% profit on our trade! (I’ll see what I can do about that extended shore leave you’ve been hinting about.)

All in all, we learned something this week: Markets can be irrational. With the bad European news we received last night, along with the less than expected economic growth numbers, the S&P held its ground above the 1400 mark while briefly touching 1398.

We paper traded an Iron Condor on Wednesday at the 1415 and 1350 levels at a 90 cent credit. In hindsight, we should have gone live with this trade.

If our Bear Call had filled on Wednesday, we would have been ok this week; but figures do not lie, and captains have to stand with the truth, so we will record this week at a 2.2% loss (excluding commissions).

We’ll be looking for another trade next week, perhaps tweaking our strategy a bit.

Have a pleasant weekend everyone!

The Capt.

SPX Trade Adjustment!

Sell to Close the 1410 strike. Sell ONLYthe same number of contracts that you bought to close the 1405’s!

The Capt.