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.
How We’ve Been Cashing In On The GLP-1 Craze
The booming market for weight-loss drugs, particularly GLP-1 agonists, have led to substantial gains in drugmakers Novo Nordisk (NVO) and Eli Lilly (LLY). The latter is seeing its share price approach the $1,000 level, putting it out of reach for most investors.
But we’ve been able to generate thousands of dollars from LLY over the past year and boost our rates of return using a simple options-selling strategy.
Simple Strategy Yields 98% Win Rate in H1
We’ve closed 50 winning trades and just one loser in Options Income Weekly so far in 2024, generating consistent income despite the low-volatility environment.
Let’s take a closer look at our results and how we’ve been navigating the market this year.
Investors Are No Longer Fearful, But Should They Be?
Underwhelming earning reports and other economic data are showing that the Fed could get the data it needs to finally consider cutting rates sooner than later. However, as my colleagues have said many times, eventually bad news is going to be just that – bad news. For now, investors seem hopeful that a weakening economy will lead to cut rates that will, in turn, boost the economy back higher while keeping inflation at bay. So, how bad is the data coming in and what can you do about it to keep your portfolio safe?
