Weekly newsletter of MYstylework - Issue #79
WHAT'S ON YOUR MIND?
WHAT'S ON YOUR MIND....
If I asked you for one thing which you would like to do now? Wat will that be? My guess 9 out of ten would be going for a holiday right? Not just any holiday but one that gets you out of your country! 😆
On normal circumstances, I would say everyone deserves a holiday now and then, at least once a year...especially now when most of us have relatively been locked in country for almost 2 years and that if given the opportunity, we would have flown out somewhere. Least would be a domestic break.
I also validated this through google trends for Singapore, top searches would be for holidays and for Malaysia also the same besides football of course. So we see that in this region, people want to get unlocked and enjoy themselves still.
What about in the US then? Unfortunately holiday is not on their priority but something seems odd that top trends is on war!!! Nuclear bomb, Ukraine, Cold War, you name it.... perhaps there is lots of fear there considering that the largest supplier of war equipment is arming everybody to the billions 😓
What about in the UK? I would think people will be interested in the monarchy since the late queen have now passed and the king has now risen but wet his hand with ink 😂... (insider joke, go lookup if you have not seen it). People in UK is looking up for government social assistance, which means their economy is in or going to be in shitty state... maybe time to find some UK stocks to short 😮
It's interesting to see that people in different places seems to have different stuff on their mind and I would say this kind of data searches would be more reflective of situations than what we hear from the news... go check out trends.google.com
SPX - 3873
A lot of people got caught long last week as the market tumbled after the CPI release on Tuesday. As inflation is still running at 8.3% it looks like there is no hope that the Fed will ease the rate hikes. In actual fact, there would be no way the Fed is going to reduce any rate hikes lower than 75 bps at the forthcoming rate hike on 21 September (Wednesday Trading Day). The market makers are just taking an opportunity to put a hope out for a low CPI before release (I think it was 5%+ expected) and then when 8%+ came out, it crashed the market.
The next down level to watch for is 3700 level as the 3900 level was strongly broken down last week. Although, there was a daily bullish pinbar formed last week, I would be skeptical on that for a risk on week. If you look at the weekly candles, it is a full on bearish engulfing candle! That's a bit scary. I've already put on some shorts on Friday just in case.
Trading range for the week is between 3650 and 4050.
NDX - 11861
NDX took a whopping 5.8% hit down last week. Sell and run with your money is in play practically whole of last week as CPI data release was not as what market expected to be. If you look at the everyday stuff you are buying, things are not becoming any cheaper and I will also not expect that will happen. Prices are expected to stay elevated and people will just start to spend less, that's it. As long as the global economy with its energy crisis, supply chains still in shambles, China still locking up people slowing down output and the war in the Europe still continuing, consumption will not go up and so is prices not going to come down. There is no way with this that businesses is going to reduce prices once it is up as no volume growth need to be covered by high prices right?
This week, 75 bps is on the table and at worst 100 bps stronger hike may tumble NDX even further. Start to lineup the bottom supports for all your favourite NDX stocks. AAPL, MSFT, GOOGL, AMZN...
Levels to watch 11000 to the lows as that is also roughly where the weekly 200 MA line is hovering at.
We expect this week's range to be at 11650 to 12800. Take opportunity on rallies this week as next week is the Fed Fund rate hike announcement. If we rally this week, take profit on your longs and chill next week.
BINARY TRADING...
Our trade on TWTR did not POP but it was not all lost as we exited the trade with 32% profit. Small but it was okay as our expectation was either we don't lose or win BIG. You can see our results on the tiktok video below.
There was one issue on the trade though, liquidity was low on the ticker as a result, it was not so easy to get out of the trade for all legs at the same time. So we exited only a few days after the meeting instead of same day.
This week, you may use the same strategy to hedge the downside for QQQ or SPY. Run to November expiry for the trade.
For Put Backratio, Sell a Put ATM and use the credit to buy 2 OTM calls. The trade should be at a small debit or credit.
QQQ needs to rundown another 7% which is not unlikely if we move further down to the lows if the Fed pops a 100 bps hike.
If SPY hits the weekly 200 MA, we are going to run with this cheap trade with 200x profit! Just speculative, don't sell your house for it please!
Tik Tok Videos
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Winning Options Strategies everyday. Creating high probability low risk trades 😎 #optionstrading #optionsstrategies #elonmusk @tastytrade — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Winning Options Strategies everyday. Creating high probability low risk trades 😎 #optionstrading #optionsstrategies #elonmusk @tastytrade". Elon Musk | Stock trading | Another WIN 😎 | .... Sunrise.
Twitter shareholder's meeting for takeover by Elon Musk 13 Sep 22, 10am. Lets trade... #optionstrading #optionsstrategies @tastytrade — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Twitter shareholder's meeting for takeover by Elon Musk 13 Sep 22, 10am. Lets trade... #optionstrading #optionsstrategies @tastytrade". select Nov 18 expiry | Sell ATM call strike 43 | recheck ATM price on open on Monday | .... TikTok's song-like tropical house(974524).
J.Powell's Message yesterday in 1 minute... @tastytrade #optionstrading #optionstrading #stockmarket — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "J.Powell's Message yesterday in 1 minute... @tastytrade #optionstrading #optionstrading #stockmarket". Fed Message??? 🏦 | Responsibility For Price Stability.... | Inflation Target | .... Suns.
What to expect for this week's market.. #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "What to expect for this week's market.. #optionstrading #optionsstrategies". SPX down 141 points (3.37%) last Friday after J.Powell speech | Monday another 27 points drop | but we see some slight support at 4000 level above daily 50 MA | .... Change My Mind.
Option Trade on JD - watchlist at last Traders Talk on 9 Aug. Closed today $922 profit 🤑 #optiontrading #tradingstrategy — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Option Trade on JD - watchlist at last Traders Talk on 9 Aug. Closed today $922 profit 🤑 #optiontrading #tradingstrategy". Option Trade JD covered potential trade during 9 Aug Traders Talk Entry 9 Aug Exit 26 Aug Profit $922 | watch till end to see the trade we did 😉 | Option Trades Adjustments - Based on Price Actions | .... YOU'RE MY SUNSHINE.
Hawkish remarks by J Powell crushed the market - pullback expected until Next FOMC in Sept 21. Watch for key points raised #optionstrading #optionsstrategies — www.tiktok.com TikTok video from mystylework.trade (@mystylework.trade): "Hawkish remarks by J Powell crushed the market - pullback expected until Next FOMC in Sept 21. Watch for key points raised #optionstrading #optionsstrategies". Key Points For Traders | Here's what JP said.. | > rates will go up until inflation is down to 2% | .... Flip through.
TRADERS TALK
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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.