February Update

                                                       Context

As is typical with market corrections, they seemingly come out of nowhere catching most investors off-guard. This most recent correction which began early October was no exception. However, clients of WhiteWave were forewarned with enough time to prepare. Why? Because WhiteWave has a reliable and repeatable process developed over a forty year period.

The proprietary Risk Models that were able to identify the risks forming in January 2018 flashed red the end of September. Our published 2018 upside price target for S&P 500 @ 2965 missed by a mere 20 Points.

Thin late December holiday markets registered dramatically oversold readings. We saw signs that our technical model was trying to turn up the last week of December.

As a result we switched to a buy before you sell mode on 12-26-18 looking for a bear market rally. Our risk models confirmed the turn 1-2-19.

This gave WhiteWave clients sufficient time to adjust their portfolios depending upon their trading style. Our clientele consists of Retail Investors, RIA’s, and Hedge Funds; each with a different approach. Some added long positions, others bought Call options while others used ETFs to add exposure. Regardless of their approach they were prepared and profited from our process.

The WhiteWave process employs elements of price, volatility, Matrix Levels, risk spreads, among others, across multiple duration. We measure and record the data for U.S. stocks, Bonds, Currencies, Oil, Gold Commodities, and Foreign Stocks & Bonds.

Our models enable us to distinguish between a market correction vs. a Bear market. Throughout 2017 when many continually called for a market top, our models kept long-only and RIA clients invested through January 2018. At which point our models detected rising risks as described above. Our models signaled the same breakdown the first week of October. For active traders our intraday alerts provide trading levels for those wishing to trade counter-trend moves.

No system is perfect, but our process is reliable and repeatable with models designed to improve the probability of success. Whether you are a day trader or long term investor, we can help you stay ahead of consensus.

                                                   Forecast

What began as a rally in a Bear market has turned into a chase for Risk assets.

The pain trade is for higher into qtr. end with known risk now resting at the respective
200 DMA’s in the S&P 500 and Dow Jones Industrial Average.

Our view is that reasonable earnings would be met with a positive response due to the depth of December’s sell off.

We are Bullish Equities with an eye for names that lagged the January rally,
cognizant that the Indices as well as many names are trading overbought.

In this genus we are watchful for a February trading range breakout in Googl or Amazon trading range.
These two names have languished as other names dominated the rally.

WhiteWave February  2019 Update for Long-Term Investors /RIA’s

Medium-term view; we have hit and exceeded initial upside Index objectives.

Going into March we’re expecting individual names to out preform the Indices.

We’re in a trading environment where risk management is imperative.

The Indices have only paused at resistance levels for a day or two.

The macro theme is for slowing growth and lower earnings.
Thus far the market is not responding to this Fundamental thesis.

We’re sticking with our macro playbook, focusing on support and low risk buy entries across all asset classes.

To that end we have featured select Oil names, non-correlated service companies such as NOW & CRM, Gold, Microsoft, McDonalds, LVS, MLCO, China Tech, Semi’s (INTC) and Industrials.

We maintain our Bullish thesis for the burgeoning Marijauna industry with tactical trades.

Judd’s Room 2019 February Update for Short-term Investors

We came into February a reluctant Bull monitoring contra trend weakness
that originated at matrix levels for signs of investor capitulation.

Mid-week weakness has been fleeting although it did proffer a couple of profitable low risk contra trend trades.

The Matrix coupled with the Risk Spreads kept us overall positive the Indices.

WhiteWave January 2019 Update for Short-Term Investors

 February focus

2/4 Long QQQ Feb 15 269 Call @ 2.02
Sold  QQQ Feb 15 269 Call @ 2.03 on a stop

2/5 Long SLB March 45 Call @ 1.33
Long DIS Feb 110 Call @ 1.37
Sold DIS @ 114.76 after earnings post market

2/6  Sold DIS @ 113.80 pre market
       Sold DIS Feb 110 Call @ .92
Bought DIS shorts @ 112.69
Sold SLB March 45 Call @ 1.24
Long QQQ Feb 8 Put @.78
Sold ES @ 2727 Globex

2/7 Bought ES @ 2710.75 Globex 6 A.M. CDT
      Sold QQQ Feb 8 Put @ 2.02
Long ACB @ 7.75

2/14 Long MCD @ 274 for Ria’s

        Long INTC FEB 22 51 Call @ .56
Long CRON @ 20.722/15 Sold 80% INTC FEB 22 51 Call @ .90
Sold CRON @ 21.35
Long LVS @ 60.15
Long LVS March 14 Call @ .61
Long GLD March 125 Call @ .82
2/19  Sold 2/3 GLD call @ 1.47
         Sold LVS @ 60.84
         Long KWEB @ 44.582/20  Sold KWEB @ 44.99
         Long APHA @ 9.93
         Long CRON @ 21.94
         Long  EWG @ 26.14
Copper bottomed

2/21  Sold EWG @ 26.58
         Sold 1/2 PBR @ 15.55
Sold CRON @22.73
Sold APHA @ 10.40
         Long VXXB @ 31.88
Sold VXXB @ 31.89 stop
Long MSFT @ 108.44
Sold MSFT@ 108.86 exploded the 22nd
Long Spy Feb 27 Put @ .98
   Sold Spy Feb 27 Put @ .91
Long TWM @ 15.01

1/23 Sold TWM @ 14.87       

        Long Spy Feb 27 279 call @ 1.11
Long KWEB @ 46.03
Long EA @ 94.16
Sold EA @ 94.16 stop

2/25   Sold KWEB @ 47.66
Sold Spy Feb 27 279 call @ 2.31

WhiteWave keeps you executing timely trades through the use of proper trade location.

New Feature

Daily Chat Room

A live forum for Investors and Traders where we discuss current capital flows, instruments by request, and charts.

We feature 1-2 low risk opportunities a day.

Chronology of trades
http://www.whitewavetradingstrategies.com/january-update-2019/

If you’d like to learn more you can click on the research link to our site or just call.

Click on the link to learn more or get back on our mailing list.

www.whitewavetradingstrategies.com

January Fan Mail;

Judd I really enjoy your trading room. I find all your comments to be worthwhile
and demonstrate a deep understanding of how markets work.

I wish I had joined you sooner!

The exposure we receive from just reading does not do your work justice.
I find that you use a totally different terminology and approach that needs time for newbies like me to grasp and appreciate.

For me its all the comments you make in the room to explain and provide depth to the analysis.

I feel I’m at the beginning of the learning curve for what you are presenting. I will not make many comments but rest assured I am paying close attention to what you are saying.

Keep up the good work and have patience with beginners like me.

Rene

It always amazes me that you’ll give a target in an instrument that seems improbable and then the level is traded.

I’ve learned to trust what I hear. I’ve seen it happen too many times to still be skeptical!

Robert

Hey Judd;

Nice trade in the Gold! Wish I was on board.
Now what do I do with my Bitcoin Longs @ 19,000 🙂

Dave

Keep your feedback coming.
We are open to comments as we continually strive to make our product better.

All my best,
Judd
Chief Market Strategist
Judd@whitewavetradingstrategies.com
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