WHEN OPPORTUNITY STRIKES...
Most people live a normal life, go to work, finish work, do the same for 4 more days, have the weekend recovering from the tiredness of the 5 days week and before you know it, the routine starts again.
I had been doing the same for more than 20 years but have you ever wondered when is the day you will be able to make a change? Besides being forced to it on your retirement of course.
Nowdays, it is becoming more common that you see people just leaving this kind of life for something more simpler and something more fulfilling for their life. At times, you see that people just quit to spend time with their children especially for those who have growing kids. Wouldn't it be nice for you to spend more time and bond with your children while they are still young? Of course....
Also, technology and our social pattern have also changed dramatically nowdays to make the traditional 9-5 cycle no longer a must to make a comfortable living. People can just make a living out of a laptop from home, like a youtuber, a content creator, a cook/baker, a writer, a stock trader etc. Things that required big investments, complex knowledge, high capital or big marketing budgets have mostly scaled down to being accessible by anyone provided you thoroughly study your targeted field and implement your plan.
The best thing of course if you can do the things you like and at the same time earn a decent living, be happy and merry. There are plenty of opportunities for sure, question is...
"When Opportunity Strikes...Are you there to grab it or continue to run that little treadmill day in day out"
SPX
Volatility is still the main play for the market. The market is indecisive if it really wants to go up or down. For the past 5 days, 4 out of 5 days, the intraday movements is above 1% of the index. Which means at the same day, SPX might be going down and and up reversing to going up and might end the day with little change.
Such kind of market movement will cause a lot of ruckus to your portfolio especially if you are adjusting your trades rolling up or rolling down based on the market movements and before you finish adjusting one side, the market direction turns.
For the time being, the overall market direction is still on an uptrend and the chances for rebounce is still on the high side. Dip buying on fundamentally strong stock is still less risky. Even if market continue to drop, if your trade duration is long enough, if market rebounce, you may still be positive in the trade. But, exit quick if there is already some reasonable profit around.
Shorting positions on beaten down overvalued tech stocks via put spread is also a good potential nowdays.
NDX
Big daily swings is also the play for Nasdaq 100. NDX ended up +115 points on Friday and bounced off 150 SMA. Looks a bit positive for the market and hopefully it will give a bit of confidence for a rebounce of the tech sector which has taken a retracement after more forthcoming implementation of rate hikes around the corner.
Nevertheless, the retracement of NDX provides an opportunity for entry of fundamentally strong stocks which has retraced from its high in December. MSFT has retraced around 13% from its high while Adobe has retraced around 28% from highs.
As the market is still in volatile territory, we may look into adding one part of our intended long term investment allocation now. MSFT 300-310 level would be a good entry point while ADBE 500-510 is excellent.
Short term trade up is also possible for MSFT. As for ADBE, there seem not to have any support level now and next one is still far at 500 and 470.
TRADE WATCHLIST - SBUX...
Starbucks (SBUX) continue to retrace breaching the 100 level. As of now, no valid trade appeared because there was no bounce & bullish pinbar at the 104 level.
The next level to monitor is 100 now. Adjust the strikes accordingly if valid trades emerges, ATM strike with $5 width strike. Also wait for a bullish signal on bounce.
TRADE WATCHLIST - JPM
After the financial sector run-up around 12% since December and after its earnings, it has been sold down immediately. JPM gapped down after earnings and lost around 6% from its high.
Re-entry level if it retraces back to 152 level and bounces up with bullish pinbar.
Possible trades, ATM Call financed partly by a Bull Put Spread ($5 width, min $1 credit). DTE 18 March.
To collect more credits during trade and protect Call decay, Sell Calls 2 weeks up on days which JPM have a major run-up more than $1.50 daily move.
Exit between $165 to $168.
INVESTMENT BUY IN - MSFT...
For those who seek to grow an investment portfolio, there is a buy in opportunity for Microsoft. 300 to 310 would be good buy in level for one part of your allocation to this stock.
It is quite rare that MSFT has gone down to 150 SMA level during the past year. For now, it seems to be bouncing off this support level. Upside back to previous high is around 13%.
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DISCLOSURES
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options: https://www.theocc.com/components/docs/riskstoc.pdf
MYstyework is an Online Financial Literacy Educator and materials provided is solely by MYstylework and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. MYstylework, through its contents, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. MYstylework is not in the business of transacting securities trades or an investment adviser.
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