TURNING POINT...
Ever got to a stage where it seems to be a turning point in your life? For the better of course...
We all will reach there at some point in time. As everyone wants to progress forward in life, there are always a stage that you will have to take some tough decision. One very common one would be a change in job. Especially, if you are stuck at your current one for many years, then it would be tougher to decide if you would want to move on to another one. Why? Because we are too used to the current one and is contented for a long time. Also, the fear of uncertainty of what comes next.
The thing we have to tell ourselves when we are in such a situation is, what will the current job brings us? Will it still meet what we want, whether it is job accomplishment, satisfaction or financial reward. Will the new one provide better? And of course, the fear of what if it does not? What fallback do we have?
However, you answer these questions, the bottom line is do you want to move forward? Being stuck at a place you do not like will not bring you ahead, it's like banging your head on the wall. The uncertainty ahead, may be possible way for you to progress and prosper to a better and happier life perhaps? Then why not take this as a turning point of our life. Strive ahead, make it work. If it don't work out as expected, get more strength to try again, as there is no way back. Sometimes, it is better to burn bridges so the only way is forward!
Apply this to anything you do whether work, relationship or even financials.
"What doesn't kill you makes you stronger"
SPX
Just as we thought it was coast clear, the market throws a spanner on our head. Giving us another painful blow to our pocket. The market was positive all the way till Wednesday closing up to 4600 points, moving up about 4% before being spooked by unexpected market earnings movements in big caps such as Facebook, gapping down almost 27% after it reported less daily active users. For you guys who have not logged in to your facebook account everyday, here is to let you know, it pays to consume stuff in your portfolio. For facebook, what makes it worst it is free to use or login but it cost the company billions if you don't.
The market seem to be using, a 20% threshold as a new marker, if it dislikes what you report. The previous weeks, it happened to Netflix. If you report great earnings it is a 10%+ bonus, like GOOGL and AMZN. It can be a painful earnings season, if the bigcaps are not up to expectation for the weeks to come. By the time the earnings season finishes, then we would be coming face front to the interest rate hike decision in March.
NDX
NDX made some recoveries late Friday after it lost 4+% on Thursday after facebook spooked the market. Not even its brothers GOOGL and AMZN positive numbers can bring it back fully back on track.
We would expect that the market will continue to penalise tech stocks not meeting their earnings expectation or giving bleak outlook. The current market play seems to be along this line, only if you beat earnings, the market will reward you with heaps and bounds, taking snap for an example, it was slapped down more than 50% since last earnings and this time round, the market gives it +50% for showing a better report card. If you don't its going to be 20%+ slapdown.... Kind of crazy isn't it, volatility of big caps as if it is a mime stock.
TRADE WATCHLIST - SBUX...
From last week, SBUX has retraced about $3 down. SBUX seems a bit correlated to the market. Failure of the market to break higher has not helped the the counter to move out from its low. However, we still see high trade volume for the counter. So I am still bullish on SBUX and once, market gets out of this rout, SBUX should recover back above 100 level very fast. That's my take, but lets see how the market play out. Take a longer trade duration, extend to April probably and enter diagonal trade with shorter term weekly calls to cover for the theta decay or possible drop in prices (sell calls on up movements, close on down moves or when extrinsic is little left). However, watch for the expected March volatility and if things turn, exit if you have made some profits or sell higher delta calls as security.
For long term investment, we have put in some long positions at $95.
INVESTMENT BUY IN - MSFT...
Still an opportunity at current levels. Last traded at $305.94.
INVESTMENT BUY IN - ADBE...
If it comes close to 480-500, that's where we strike again. Last traded at $305.94.
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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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