15 Minute Read

Environmental Hedging: Step 4

July 13, 2017

By | No Comments

Top of the morning Tackle!

Last week Step 3 of the system went over the notion of compounding gains in Clean-Tech stocks, i.e. SPWR and FSLR thus far. We went over what the potential compounded gains in stock would look like over the course of 1-20yrs and some insight on how I, personally, plan on compounding in products and stock. I emphasized and will re-emphasize; however, it is essential to this system that gains are compounded by:

A). The buying of clean-tech products such as solar panels, electric home batteries, organic-food, or gardening materials, so on and so forth. There is no shortage of materials or environmentally sound products that this money can go towards.

And if the beat of that drum doesn’t vibe with one’s personal identity then think of it to reduce expenses and reduce dependence. Just use your imagination as to what best fits your personal infrastructure and helps the overall environment.

B). When in doubt, it is a prudent play in the Environmental Hedging System to buy shares from our targeted list and begin compounding there.

Now, I am sure you’re asking yourself: Does compounding gains from our Robin Hood trades in Clean-Tech product or Clean-Tech shares make an environmental or social difference? Incrementally, yes. And if enough people do it, yes.

That, and a combo of A & B helps the most. Just be mindful that all we are trying to do with this system is reduce expenses; increase quality of life; become producers, not consumers; and, environmentally hedge our portfolios.

Robin Hoods:

X—United States Steel.

She is still holding strong and showing resilience to market volatility. That and the current administration is considering tariffs on steel imports.

Now, I pulled off two rounds of naked puts above 75% return on premium and will be reissuing another round on Thurs or Fri. We still have room before 27, premium is good, and there is nothing technically or news-based that makes me think 27 isn’t soon.

FCX—Freeport McMorhan

She finally popped on Monday and I collected gains 3/4 of my position, leaving 1/4 to run a bit more. Come Thurs or Fri if all is well I may ladder in another trade. Stay tuned!

GDX—Vanneck Vectors Gold Miner’s E.T.F.

Let’s go ahead and get this one back on the board. I’m seeing short-term potential come Thus-Fri to issue a round of naked puts. (If you remember correctly we have been waiting for this one to bottom-out). I will disclose, however, that I will be waiting for confirmation before I pull the trigger, as should you. Receive confirmation on /GC, not from the GDX chart though. And I will be targeting 1240 before it heads back south. I am still bearish on precious metals, so this would be a quick trade.

Targeted List:

FSLR—First Solar Inc.

I am cautiously bullish on this one. We could see the beginnings of a M-Formation at resistance or a continuation of a bullish trend. I had a half covering until Monday but pulled off insurance and I am going to let her breath for a couple of days. In the past when FSLR has broken out it was typically a sizable move.

SPWR—Sun Power Inc.

Basically, the same synopsis as with FSLR, however, SPWR has a bit more room to move before it’s in a break-out zone at 10 to 10.14 or to a M-Formation reversal zone of 9.50-9.99. Also let SPWR breath like FSLR and wait for confirmation.

If you check out TAN, that’s a good place to track and chart the solar industry. I will often refer to it for charting purposes.

TSLA—Tesla Motors

Good thing we waited, lol. And if you are an owner of Tesla stock good thing you were covered, congrats on the cash-flow. Indeed, you witnessed an uncomfortable drop in share value, but you now have a nice chance to compound gains in stock or product. As for the bulls, still be patient. Good news is that TSLA is known for its quick reversals. Let’s see if we can get a W formation to form at that 315-support zone. Stay tuned!

Environmental Hedging Step 4: System Philosophy.

One of the most troubling paradoxes about the Western world is its appetite for self-destruction. In my opinion, this is mostly the result of the indifference of good men, and not necessarily the evil doings of evil men. You see, a conspiracy theorist’s greatest fear is that the world is the way that it is because of incompetence and not because of well thought out, well executed Machiavellian agendas. I really think much of human suffering is the result of method, technique, and the failure to have adaptable systematic approaches to important matters.

For example, let’s take the claim that fossil fuel energy systems are incrementally destructive to human health and our natural environments…which is a claim made by almost the entire scientific community and 98% of world governments. Seems straightforward, right? However, there are people out there unwilling to accept this truth as a truth.

You hear statements like: “well, it’s more complex than that” or “that’s what they want you to think” or witness a person flat-out deny this reality in and of itself. Such statements and postures, once again, arise from a fear of chaos and the fear of having to systematically adapt. Modern human beings are comfort-oriented, creatures of habit that have great difficulty shedding vices, especially if money is involved. The world of Alex Jones and “alt-facts” is candy land for such people because the ideas pitched justify their individual complacence’s as well as insures the money which backs them.

As a result, when it comes to the environment we have a problem with perception, with individual identity, and with consumption…nothing more, nothing less. Our technological capabilities are there and the economic potential to stimulate business development and investment is there. Just look at the data, folks.

Thus Step 4 of Environmental Hedging is largely about one’s mindset and methods of consumption.

The great political economist Thorsten Veblen once said you cannot manipulate democracies through force, as evil men would do. However, you can control a democratic society by controlling attitude and individual identity. If you can fabricate desire, and the desire of “things” which are just outside of an individual’s financial grasp, you can trap that individual into a state of “conspicuous consumption”. Now, if society’s end goal is merely to consume, conspicuously, then that population is, by its very nature, a society that is conditioned to be reflections of that environment, like advanced animals, rather than aware, self-deciding human beings.

You see, since corporations are self-serving entities it is very easy to use their self-serving nature against them. It just comes down to personal responsibility with one’s money. If you are like me and you just want to live in peace, in a just society, with a clean environment then we have break away from feeding these giants. In other words, don’t give or spend your money at corporations that do not uphold your values and endanger the lives of future generations. It’s that simple.

If you do not want food with chemicals in them, then don’t eat at McDonalds. If you do not want to be subject to the whims of your utilities company, then produce your own energy. If you take money away from these net-negative corporations they will change their business practices to accommodate the new mindset and shift in buying behavior.

All you must do is evaluate your own nature and habits of consumption and take responsibility for them. Indeed, living a “green” and environmentally responsible lifestyle is more expensive than the Wal-Mart lifestyle. That is why we have Steps 1-2 in the system. And if you have been following the system thus far you should have already made enough money from Steps 1-2 to accommodate Step 3.

All you must do from there is embark on Step 4 and start getting excited about reducing expenses and creating personal infrastructure, for free. I also want you to get excited about improving our environment and get excited about making good money in the process.

Next week I will further elaborate on Step 4, since it has moving parts to it. My goal with this blog is to provide an educational and financially profitable experience for our environment. Fortunately, we have a year together and I will approach the philosophy of environmental hedging from a variety of stand points—the analogical, the metaphorical, and the analytical. I will also provide very clear and direct tips for Steps 3-4 and will also be providing potential trades and personal trade management for Steps 1-3.

Most importantly, beyond showing you how to do all this cool stuff with the financial markets in conjunction with our amazing coaches at Tackle Trading, I am going to show you the world, and show you why it is a place worth fighting for.

Next stop come July 18th will be Rome, Italy.

Cheers,

Bob Shannon.

Chart Modal

Tackle Trading

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.