As you know by now, I can never resist the opportunity to dissect a proverb.
The famous saying “one bird in the hand is worth two in the bush” likely derives from falconry where the trained bird of prey was worth any number of pheasants hidden in the undergrowth. And by “any number,” I mean ten – when the proverb first appeared in English in 1530, in Hugh Rhodes’ The Boke of Nurture or Schoole of Good Maners, it read: “A byrd in hand – is worth ten flye at large.”
Now, I told you earlier this week that I’d show you when we could expect some “yellow flags” to appear in the market – and how we’ll profit when that happens.
Today I want to give you one trade “in the hand” – that is, a long trade you can deploy right away – and a further-off “bush” trade that you can use to profit a little later on, when the market hits a key support level that spells “caution.”
Once we get to that lower level (and it might be sooner than you think), we can expect to deploy a more balanced approach: instead of predominantly bullish trades, we’ll be adding in some short plays as well, like the one below.