Skip to main content

Posts

Showing posts from August, 2019

SPY 30 September Option Trade

Testing the waters with SPY option trade. I am putting $52 at risk, as the SEP 305 call option was fairly inexpensive in my opinion. With only a 17% chance of being profitable, there is a reason the cost of the option is cheap.

The truth behind this trade is that I felt disingenuous sharing my opinion on what may happen next without taking a position either bullish or bearish. Today I am pretending to be a bull for the next few weeks. I think there is a good chance SPY 300-302 will be tested again before another big selloff.


SPY Watch 8/19/19

Monday 8/19/19
         The S&P 500 rose 1.2% on Monday in a broad-based advance that extended its rebound rally to a third day. The Nasdaq Composite (+1.4%), Dow Jones Industrial Average (+1.0%), and Russell 2000 (+1.0%) also advanced at least 1.0%. —Monday's session was much like Friday's in that the market quickly jumped out to a big lead following another round of positive headlines. More reports surfaced about stimulus plans in China and Germany, which helped kindle some curiosity about the Fed's annual Jackson Hole Summit on Thursday and Friday. In addition, the U.S. granted Huawei another 90 days to continue buying supplies from U.S. companies.—None of the news, however, really provided the market anything "new" or surprising. Perhaps the calm that flowed from the absence of negative news and economic data helped the market reset from a perceived short-term oversold condition.—All 11 S&P 500 sectors posted decent gains…

The Dubious Honor Of First C8 Corvette Crash

I know from experience, the driver must feel awful after wrecking their new C8. Looks like airbags deployed, insurance will probably write this car off as a total loss considering if there is any structural damage to the frame of the car.

Still A Bull Market Till It Is Not!

The recent market volatility is the kind of wild swings I was literally banking on when I first funded my trading account back in 2016. On Monday the Dow was down over 700 points, on the very next day the Dow was up 300 plus points, followed by a flat day. I would like to imagine that if I was trading this week that my average technical analysis skills could have identified at a minimum an opportunity to get short for a bucket load of points.

As previously mentioned, I am now keeping my powder dry for when the market is declared to be in a recession, this is when I plan on building my longterm portfolio. My time frame for building my portfolio is not in days, weeks or months, I am talking about building the portfolio over the course of the next decade. I know it is not super sexy, but, we all have to acknowledge that it is common knowledge that if you wait long enough through the dark times of market pullbacks, slowdowns and or recessions, historically the stock market has rebounded …