Weekly newsletter of MYstylework - Issue #75
SHALLOW POCKETS
SHALLOW POCKETS....
Inflation is real guys....especially when you start feeling it.
Just at our neighbourhood "Mamak store (coffee shop)", a cup of "Teh O Ais Limau (Ice Lime Tea)" used to cost MYR2.30 around 2 years ago and slowly crept up to MYR2.50, then MYR2.70 and now MYR2.90. How much of an increase was that within 2 years? That's a crazy 26%. Let me know if you had a 26% salary raise to cover for that, let not say anyone aver got a 10% raise during this bad times, let worse even a paycut. Worse, retrenched which happened to someone in my household. How are we even going to cope?
Go thinker around you and you will see that our pockets are getting shallower by the day. If there is no countermeasure initiated then we are going into trouble at one point. Some people say, spend and eat less, well if you say you take this as a diet opportunity, I can say it never works 😂.
The fact is there are lots of ways out there which you can learn and use to cover for these inflationary problems. You just need to put a little effort to lookout for them and start a process trying to monetise it.
Examples of methods which I personally use are:-
Trading/Investing
Coaching - use the skills you have to help others
Affiliate marketing. There are loads of things which we can affiliate with and even use it to save on our own spending meaning affiliate yourself! This is one thing which I always do now before spending on anything, especially online subscriptions or purchases, is to check if they have an affiliate Programme. I register as an affiliate marketeer and then refer myself and earn the marketing fees before purchasing it myself 😂
Hotel memberships - if you are planning a holiday, join a vacation club from a hotel chain or even a free membership can already give you a 10% discount on bookings.
Partner site bookings, instead of booking at the main site, lookout for partner sites which offer higher discounts but using the main site services. Like recently I booked a car via Alamo and they uses cars from Enterprise.
Online e-commerce - Affiliate Sales or Dropshipping...you don't even have to have any products or stocks. Just open shop on any channels facebook, tiktok, instagram etc, all at no or limited cost. Go promote other people's products if you genuinely know they are good and personally use them. The partners can give up to 20-25% commissions and that's a lot for giving a word of mouth boost...
If any of you guys are keen, besides trading/investing, I'll cover some of these in one of our coming Traders Talk... Post on facebook to show your interest. If, there is enough people, I'll make one show for this...
Buckle up...things are going to get more and more expensive... our MYR sucks big time...
This is one of my earliest learning quotes I understood for real....
"If you don't change direction, you will end up where you are headed"
SPX - 4280
Wow, the market is really desperate to recover their bucks. It's up up and up...even though on elevated levels. SPX is up another 135 points, 3.26% for the week. It breached the 4200 level and looking to hit 4307 next level now. 200 MA is also slightly above this level. Well, if the market is hungry anything can happen and it may breach these levels this week, but it's like paying with fire if we enter longs now.
Let's just enjoy the ride up on our long investment portfolio. Those who have entered since March/April this year should have their portfolio into some profits now. Those earlier ones, should see some good recovery of 15-20% at least.
If you are still bullish, ride on day trades and exit same day to avoid an overnight reversal as most stocks are overbought and all ripe for double tops to form. Market makers are lining up their last push for bull traps. So watch up for flush ups on stocks, ie, long green candlebars. If you see one or two, then it's time to exit as these may likely be followed on with a reversal.
This week the retail sales data is up on Wednesday and on Thursday the Fed minutes. Also, this week is August month expiry so expect a retracement on the market.
Trading range for the week is between 4150 and 4400.
NDX - 13565
NDX is up 273 points, 2.06% up for the week. From the lows, NDX is up 33% in just 8 weeks. Overall, NDX is still down by 19% from its high. But overall, we still see weakness in the component stocks as many are still experiencing huge declines from its highs. Meta is down 53%, NFLX is down 64%, GOOGL is down 20%, AMZN is down 24% and only AAPL is down only 6% from its ATH.
NDX seems to be hitting resistance level now at 13,550 level and may not be able to breach the psychological 14,000 level near term. It it falls back, 13,000 would be the next support level.
With TSLA trading post split on 25 August, the rally it has supported for NDX will probably wane down then.
Price action wise, we see certain stocks rally is not as strong in the past week. Short term, we expect a smaller retracement. We will be on protection mode with short calls covering long positions and possible bearish entries on formation of double tops with bearish confirmations.
Further, retail sales data and FOMC minutes on Wednesday/Thursday will likely put the risk on mode again for fund managers early part of the week. Futures also opened red and continue to decline throughout the day on Monday.
Next major psychological level is 14000 and we expect this week's range to be at 13,150 to 14000. Likely towards the downside.
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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.