DRAINING ENERGY...
Do you start your week full of energy and the end of week drained?
I used to start the week and end the week fully drained. The only time I find some energy is when I recharge at the weekend. This continued for most of my work life until I started trading the stock market. Things has turned 360 degrees where I start the week fully charged on Monday and this continues till Friday when I unwind thereafter eager to start the week again.
Things have changed because I was looking forward to the activities that I love to do and the opportunities to generate more income of course. With a normal working life, of course you expect the same monthly but with trading, the expectations are much different as the rewards can obviously be more lucrative and I love trading.
"Do the things you love and you will never work for the rest of your life"
Find passion in what you do and best if that can also generate you income, that's the best thing in the world. Nurture it and live on it...
SPX
SPX failed to break the earlier week high at 4595 and broke down to below 200 MA. The rise in 10 year treasury yield above 2% on the release of the CPI which has risen now to 7.5% spooked the market once again.
This is an ever recurring event where market reacts very negatively and sharply on such market data and treasury yield movements. Sell off has been quite frequent as investors take risks off the market very fast.
As we have said, the market upswings is quite shortlived. The previous week, we saw market up first half of the week and then a selloff. The same kind of trend we saw last week.
The market will have to show a few breakthrough first getting past 4595 and then going through the 50 MA before a more convincing uptrend continuation comes back. We would still expect volatility to continue until the rate hike is firmed, mid March.
NDX
451 points selloff, 3% down in a day, loosing more than one week of grinding up for NDX. Apart from the fear of more negative news from the corporate earnings, the interest rate really spooks the market. To the extent that movement in stock price becomes purely irrational as even the great stocks becomes cheaper and cheaper. Even GOOGL stellar performance and prospects can't beat the negativity of the market, giving back 12% of its earnings pop.
Meta continues to slide even lower now as well as other fundamentally strong NDX stocks. If you are long the market on an investing portfolio, these would be good opportunity for buy ins but do expect the possibility of stocks becoming cheaper. To avoid missing the opportunity on buyins, you may split buyins into tranches, buying in at lower prices if it continues to drop. When market rebounces and the prices goes above these buyins, you would be thankful you had an opportunity to get great stocks at a bargain price.
TRADE WATCHLIST - SBUX...
If you entered long trade, do sell some calls to manage the market volatility. Release the calls when you see opportunity of a market rebounce as SBUX rebounce is really bouncy with $2-3 sharp upswings before moderating back to $1 or below. Remember to again sell calls to benefit from smaller intraday retracements.
More buyin at $95 for long term portfolio last week.
INVESTMENT BUY IN - MSFT...
The $300 buyin was triggered as MSFT went down below $300 last week. Last traded at $295 now.
INVESTMENT BUY IN - ADBE...
Huge selloff on Friday, putting the price now at $473.
TRADERS TALK
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DISCLOSURES
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