Why This Pullback Is Different And What You Can Expect To Happen As A Result
Stocks had one of the worst days in over a year and one of the worst weeks in recent memory. If you were trading at all in the last week you know what I’m talking about, but now isn’t the time to run for the hills. While this July has been anything but normal, this pullback has been caused by something lurking under the surface for some time, that most traders weren’t paying attention to. Let’s get into the market technicals and what you can expect from here.
Income Madness Generates $3,621 in 25 Days
The results are in! We closed our final trade from the June round of Income Madness on Friday. We booked 19 profitable trades in a row, generating more than $3,600 in cash in just three and a half weeks.
Find out which options income strategies we used and how we navigated market conditions to achieve these results.
Relative Rotation and Relative Strength Can Guide You During Times Like This
Last week I wrote about sector rotation away from the Mag-7 stocks into a broad-based bullish move by the rest of the market. This week I want to show you a few methods of how you can witness sector rotation and be on the right side of these market moves. This can be done using relative rotational graphs and the relative strength indicator.
The Great Sector Rotation
As more economic indicators are pointing to inflation coming under control, the Fed started to signal that a rate cut may be coming this year after all. I’ll be the first to admit I thought they’d steer clear of the September time frame to avoid being accused of being political, but it seems like the Fed, U.S. Politicians, and investors are on a collision course for September. As a precursor to the main event, we see how quickly the markets can react and throw previous stock favorites out to the curb. Here’s what you need to know and how you can benefit from the great sector rotation
Short-Term Trades Fuel July Profits
Let’s take a look at how our Options Income Weekly trades are faring so far this month and where we’re finding opportunities amid the hot, summer days.
In addition to putting our options buying power to work in some new sectors, we’re actively managing a few recovery positions and one longer-term call trade that could turn out to be a solid income generator for us.
Tesla Has Taken Us On a Wild Ride
Since we entered a bearish trade on Tesla (TSLA) in mid-April, the stock has rallied more than 65% despite a disappointing Q1 earnings report. Rather than book a loss, we’ve been adjusting our strategy and are close to breakeven on the trade. However, the company is set to report earnings again next week.
Trend Following Simplified: Using “PriceTimeFilteringBarCount” for Better Trades
Schwab recently released some improvements for their desktop platform, ThinkorSwim. Aside from being able to select a GTC order as your default, one of the other improvements came in the form of a new trend indicator. Sure, the indicator’s name should have gone through some type of user experience group or a focus group. Still, naming aside, I will show you what you need to know and how you can use the new, “PriceTimeFilteringBarCount” indicator.
Underperforming Chipmaker Offers Contrarian AI Play
While Nvidia and other big-name AI stocks may get the most attention from investors, who are driving their share prices to astronomical heights, there are some under-the-radar plays that offer decent implied volatility and the chance for option sellers to generate attractive premium.
Find out how Options Income Weekly members recently cashed in on one such name with an underperforming chipmaker that’s been lagging its sector and the broader market this year.
S&P 500: Are We Headed for a Bear Market or a 5-Year Bull Run?
Don’t look now, but the S&P 500 is up over a staggering 50% since October 2022 and is currently up over 15% in the first half of 2024. At this point, it’s no surprise that the bears are peaking out from their slumber, and news articles are using fear-mongering to warn of impending doom. And yet other analysts are touting this is just the beginning of a five-year bull run. Who is right? What should you expect in the second half of the year? I have what you need to know and what you need to watch out for.
Fireworks and More For The Stock Market
The Fed has been encouraged by the barrage of weakening economic news, and so once again investors have found that to be a green light to be bullish, and that optimism sent the market to fresh highs, right before the market closed for the U.S. holiday. While bad economic news may mean bad news for the market one day, that time isn’t yet, but it may be sooner than you think. I’ll show you some charts that you need to know now.
