Nvidia Day Is Over – Now What?
With Nvidia representing 7% of the S&P 500, it’s no wonder why investors were held hostage to Nvidia’s earnings report, but now that is beyond us, what can we expect next? Before we get too far, Nvidia’s earnings remind me of years ago when I was trading Apple regularly and the stock got punished for making billions, but not enough billions in profit. Or they sold millions of phones, but not millions + 1. Nvidia’s earnings still show this market has room to go higher, but we’re still on fragile ground.
Big Defensive Win in VRT Yields 4-Figure Profit
Data-center systems specialist Vertiv Holdings (VRT) has become one of our go-to income stocks, offering profitable opportunities through both cash-secured puts and bull put spreads. However, when the summer tech-sell off hit stocks, we ended up being forced to play defense. But with some active trade management and a little help from the market, we ended up with our biggest winner to date on the stock.
Now, with our recovery trade closed, we’re back on the offensive.
Mission Accomplished
Despite investors’ hesitation toward the Jackson Hole Symposium, the event finished with the much-anticipated message from the Fed that it is now time for interest rates to come down. The market has already been pricing in rate cuts, so the next thing to watch for is how quickly rate cuts will be implemented. The market is pricing in a 0.25 basis point cut in September. How will this news impact trading for the week ahead?
The Fed’s Jackson Hole Gathering Brings Volatility
The Jackson Hole Symposium, a key gathering of central bankers and economists in Jackson Hole, Wyoming, runs from August 22-24. Powell is slated to deliver his remarks today at 10 a.m. Eastern time. The major indices fell over -0.05% yesterday, showing just how jittery investors are, waiting for a signal of upcoming Fed moves. You may remember 2022 when Powell spoke at Jackson Hole (a -5.5% move), but what does history have to say about the S&P 500 performance during this event?
Straddle Strategy Shines With Volatile TSLA
Despite our initial challenges with a Tesla (TSLA) credit spread position, we managed to greatly reduce our loss on the recovery trade. When we went back to the stock this month in the Income Masters program, we tried a new strategy that paid off quickly, yielding a nearly 15% return in just three days. Plus, we generated more than enough cash to offset our loss on the previous position.
Find out how we did it.
1 Stock, 20 Winners, $5,732 in Cash
Income Masters members pocketed over $3,100 in cash last week, closing out nine profitable trades. The largest income generator was a recovery trade on a drugmaker we’ve been trading successfully for the past year.
In fact, last week’s closeout represented the 20th winning trade on the stock in a row with more than $5,700 in total cash generated. And we plan to go back to it with another trade this week when we kick off Income Madness.
Searching For Stocks In Top Sectors
Stocks are rallying as investors jump back into technology stocks, again favoring growth over value. Investors quickly forget about the headwinds that spooked them in July and are jumping back into the market. The next leg higher of this rollercoaster ride has started, even though a week ago many investors were ready to sit on the sidelines. What happened this week and how can you find opportunities to take advantage of the movements?
Growth-Over-Value Takes Over, But How Long Will It Last?
July saw the great rotation out of mega-cap stocks into… well, everything else. The Great Rotation helped push the Russell 2000 index higher as investors sought gains on stocks waiting in the wings. It hasn’t lasted though, as growth stocks are regaining strength and value stocks are rolling over. Growth has taken back over, but how long will this last?
How We’re Finding Profits on the Tech Roller Coaster
The stock market experienced extreme volatility last week thanks to renewed recession fears and the unwinding of the yen carry trade. While some stocks have become more attractively priced, especially mega-cap tech names, the overall market remains uncertain. Yet, we’re finding opportunities to profit from both rising and falling prices.
Find out what we’re trading and how we’re mitigating risk in this volatile market.
Indecisive Market Leads Many To Want To Sit On The Sidelines
The roller coaster ride continues as Japan eases off on rate hikes while the U.S. jobless claims come in less than expected, showing maybe the economy isn’t as bad as people fear. While the S&P 500 recently made new multi-week lows, the bulls are trying to regain control and looking to finish the week on a strong note. What’s in store for the week ahead?
