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Posted by Martin March 07, 2023
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03.06.2023 – MONDAY MARKET OUTLOOK


Market Outlook
 

The market started Monday’s session in a strong mode and rallied. Unfortunately, before the end of the day, it lost all gains and finished flat.

 
Market Outlook
 

The entire three-day rally was not sparked by any news or any changes to underlying fundamentals. If the underlying fundamentals were bad as bears are telling us, they are still bad. If they are good as the bulls hope, they are still good. This trading is purely sentimental driven by emotions and irrational fear. And the wave of bearishness made this bounce inevitable.

 
Market Outlook
 

As we can see on the daily Ichimoku chart, the price action improved significantly and the price of the index follows the cloud. That is good. It is also going to recapture the red line. If this continues, the case for the bull market will continue with it. This is also improving the weekly chart. We are once again attacking the cloud and soon, we will enter inside. It makes no significance until the market closes above it.

 
Market Outlook
 

The market traded as expected, except for the closing price action. That sucked. Tomorrow, as we await Powell’s testimony, the market is poised for an uptrend, but it will be a very choppy move. Unless Powell says something unexpected or something the markets will not like, we should go up.

 
Market Outlook
 

This is a delayed outlook. If you want to learn more about our SPX weekly analysis, subscribe to our weekly newsletter.
 




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Posted by Martin March 05, 2023
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February 2023 Investing and Trading Report


Our February investing and trading were successful. We made decent options income selling premiums, we received record monthly dividends, and we purchased more dividend-paying stocks. Our account is growing and it was growing even during the recent pullback.

Our NetLiq-cash-buying power ratio improved with the market, but it is still vulnerable to market declines. I need to build more cash reserves.

 
Cash - Net-Liq - BP 02
 

Our trading delivered $2,754.00 gain last month, ending February 2023, at $2,754.00 (3.80%) of options income. Our net-liq value dencreased by -2.66% to $72,465.05 value. Our overall account is up 16.40% YTD and -30.75% from when the bear market started in January 2022.
 

Here is our investing and trading report:

 

Account Value: $72,465.05 -$1,981.60 -2.66%
Options trading results
Options Premiums Received: $2,754.00
01 January 2023 Options: +$1,466.00 +1.97%
02 February 2023 Options: $2,754.00 +10.34%
Options Premiums YTD: +$4,461.00 +5.91%
Dividend income results
Dividends Received: +$731.21
01 January 2023 Dividends: +$407.13
02 February 2023 Dividends: +$731.21
Dividends YTD: +$1,138.34
Portfolio Equity
Portfolio Equity: $198,371.59 +$5,482.73 +2.84%
Portfolio metrics
Portfolio Yield: 5.41%
Portfolio Dividend Growth: 13.92%
Ann. Div Income & YOC in 10 yrs: $109,606.44 50.29%
Ann. Div Income & YOC in 20 yrs: $9,864,244.11 4,525.80%
Ann. Div Income & YOC in 25 yrs: $547,390,161.33 251,147.12%
Ann. Div Income & YOC in 30 yrs: $192,956,719,300.97 88,530,132.79%
Portfolio Alpha: 0.34%
Sharpe Ratio: 6.01 EXCELLENT
Portfolio Weighted Beta: 0.50
CAGR: 249.24%
AROC: 4.08%
TROC: 2.04%
Our 2023 Goal
2023 Dividend Goal: $8,000.00 14.23% In Progress
2023 Options Income Goal: $70,000 6.37% In Progress
2023 Portfolio Value Goal: $96,532.51 78.13% In Progress
6-year Portfolio Value Goal: $175,000.00 43.10% In Progress
10-year Portfolio Value Goal: $1,000,000.00 7.54% In Progress

 

Dividend Investing and Trading Report

 

In February 2023 we have received $731.21 in dividends bringing our dividend income at $1,138.34.


Last month, we bought these dividend growth stocks:

 
– 100 shares of LEG @ $34.41
 
We now own 100 shares and we started selling covered calls. Options for this stock are not much traded so we are selling longer-dated calls.

 
– 50 shares of WBA @ $36.07
 
This purchase brought our holdings to 100 shares. We started selling covered calls.

 
– 100 shares of MPW @ $11.52
 
We now own 100 shares and we started selling covered calls. Options for this stock are not much traded so we are selling longer-dated calls.
 

Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity February 2023
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout February 2023

 

Growth stocks Investing and Trading Report

 


In February 2023, we bought the following growth stocks and funds:
 

  • 12 shares of GOOGL @ $96.07
     
    I am accumulating this stock now to reach 100 shares after which we will start selling covered calls.
     
  • 25 shares of AMZN @ $94.68
     
    I am accumulating this stock now to reach 100 shares after which we will start selling covered calls.

 

Options Investing and Trading Report

 

In February 2023, our options trading delivered a gain of $2,754.00 making our February options income $2,754.00. This is a promising outcome for our trading, and I hope it will continue this way for the rest of the year.

 

We were actively trading our SPX strategy that delivered $3,645.00 gain.

 

Expected Future Dividend Income

 

We received $731.21 in dividends last month. Our portfolio currently yields 5.41% at $72,465.05 market value.

Our projected annual dividend income in 10 years is $109,606.44, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $7,357.98 annual dividend income ($613.16 monthly income). We are 6.71% of our 10 year goal of $109,606.44 dividend income.

 
Future Divi on YOC 02
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add to our portfolio and the stocks’ 3 years’ average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.

 

Market value of our holdings

 

Our non-adjusted stock holdings market value increased from $192,888.86 to $198,371.59 last month.

In 2023 we planned on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan to raise more of our holdings to 100 shares to sell covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

 
Stock holdings trading week 01
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.

 

Investing and trading ROI

 

Our options trading delivered a 3.80% monthly ROI in February 2023, totaling a 5.91% ROI YTD. We plan to exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -30.75% from when the bear market started. However, in 2023 our account is up 16.40% YTD.

Our trading averaged $1,487.00 per month this year. If this trend continues, we will make $17,844.00 in trading options in 2023. As of today, we have made $4,461.00 in trading options. This is below our projected goal. Based on the goal, we should average $5,834 options income per month. But I hope, as the year progresses, we can increase options income to our goal.

 

Old SPX trades repair

 

We traded our SPX put credit spread strategy, which you will be able to review in in our next post. The SPX strategy provided $3,645.00 income (8.33%) while SPX delivered -2.93%.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq 02
 

The drawdown of our account is highly discouraging, but it started improving. I am not selling any stock positions, and I will be buying back those I sold to release our Buying power. On top of that, I will be buying more dividend-paying shares as much as possible. My new addition to the watchlist is Jackson Financial Inc. (JXN) and CVS Health Corporation (CVS) which I plan on purchasing next month.

 

Account Stocks holding

 

TW Account holdings 02
 

Last month, S&P 500 grew 39.85% since we opened our portfolio while our portfolio grew 13.12%. On YTD basis, the S&P 500 grew 7.12% and our portfolio 3.64%. We are underperforming the market.

The numbers above apply to our stock holdings adjusted by options premiums.

 

Stock holdings Growth YTD

 

TW Account holdings Growth YTD
 

Our stock holdings are underperforming the market. Hopefully, this trend will stay, and we will constantly do better than S&P 500.

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two, and we accomplished 7.54% of that goal.

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM), and today we accomplished 43.10% of that goal.

Our 2023 year goal is to grow this account to a $96,532.51, and today we accomplished 78.13% of this goal.

 

Investing and Trading Report – Options Monthly Income

 

TW Options Trading Income 02
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income 02

 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends 02
 

We planned to make $8,000.00 in dividend income in 2023. As of today, we received $731.21. We also accumulated enough shares to start making $7,357.98 a year. Our monthly projected dividend income is $613.16, and our current monthly dividend income is $94.86.

 
TW Received vs Future monthly Dividends 02

 

I have a favor to ask. If you like this report, please, hit the like like button button, so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 




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Posted by Martin March 03, 2023
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03.02.2023 – THURSDAY MARKET OUTLOOK


Market Outlook
 

The futures were dropping, the markets opened lower and continued sliding down on fear (and stupidity), but then at around noon, one unimportant FED member proclaimed that he was in favor of a 0.25 rate increase rather than 0.50 and the markets rallied. Completely worthless news and the markets go crazy about it. This shows you how stupid and irrational investors are today, obsessed with the FED and creeping about nothing. Yesterday, they were all panicking about the higher and longer comments from one unimportant FED member (Waller) and today they are all cheering about a different unimportant FED member saying the exact opposite than yesterday’s clown (Bostic). If one didn’t have his own money in the market this would have been a funny comedy. Right now it is a tragic-comedy.

 
Market Outlook
 

And so the market recovered all losses and ended in the green. That is good, though, as Bostic’s comments actually worked as a catalyst for the oversold condition and the market bounced where it should have bounced. It recaptured a losing 200-day MA and closed above it as well as above the other support lines. The biggest improvement can be seen in the Ichimoku chart below. Today, we were losing the cloud as the price smashed below it which would be bad. But then we bounced and closed above it. We now need this to hold.

 
Market Outlook
 

The weekly Ichimoku shows no improvement:

 
Market Outlook
 

Today, the weakness turned into a strength. We had an initial drop (and should have finished down) but then the markets recovered and rallied. Looking at the volume profile, it indicates that the market is actually trading efficiently. Tomorrow, we may see some choppy trading as bears may try to snap the rally from today’s bulls. We may also gain momentum and rally higher.

 
Market Outlook
 

This is a delayed outlook. If you want to learn more about our SPX weekly analysis, subscribe to our weekly newsletter.
 




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Posted by Martin March 02, 2023
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03.01.2023 – WEDNESDAY MARKET OUTLOOK


Market Outlook
 

As expected, the markets ended down today. The manufacturing data came in showing the economy is cooling off and slowing. Investors cannot make their minds up. At first, they were cheering the bad data but then some unimportant FED members started blabbing about higher rates and the market participants pooped their pants. Despite all of this the market still holds critical support levels. We are below $4,000 but still above $3,940 where tons of puts are sitting. That provides significant support.

 
Market Outlook
 

The daily Ichimoku is still in bad shape showing weakness. The price dropped into the cloud but we finished above it. It still can hit lower and that would be another bearish point to this crappy market.

 
Market Outlook
 

The weekly Ichimoku shows no improvement either:

 
Market Outlook
 

Tomorrow, the market price forecast indicates more weakness and I think it may happen given all other charts supporting more decline. The support at 3,940 may hold and we may see a bounce, though. But I think we will end down tomorrow too. Any bounce-up will be a reason for selling call spreads.

 
Market Outlook
 

This is a delayed outlook. If you want to learn more about our SPX weekly analysis, subscribe to our weekly newsletter.
 




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Posted by Guest March 01, 2023
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Gaining Mental Trust For Your Trading


mental trust

I hear from time to time that when beginners start dealing with trading, e.g. with options trading, they ask themselves at the beginning of their journey whether the whole concept of trading works at all. Because what they lack at the beginning is mental trust, which is absolutely necessary to achieve permanent positive results in trading. Of course, you can always convince beginners that trading works. But in the end, we don’t usually believe what others tell us, but when we have our own experience to verify other people’s information in this way.

But gaining trading experience is a little different because this kind of experience can cost money. And especially it does at the beginning, because beginners make a lot of mistakes, making wrong decisions, and they risk far too much or sometimes too little.

 

The Importance Of A Positive Mental Mindset

 

For this reason, it is very important that beginners get on a positive path right from the start. That means they need to experience success and be rewarded for trading. Because only if you are rewarded with positive results again and again at the beginning, then a mental belief sets in that trading (no matter what kind of it) actually works.

Thus, let’s take a look at two traders as an example. Two traders with the same starting capital and the same (proved) trading strategy. The only difference is in their mental beliefs. The first one is absolutely convinced of his trading and his success. The other, on the other hand, is very critical and skeptical, saying that trading doesn’t work. Who do you think will be successful even though they both have the same money and strategy? Well, the probability that the first trader will be successful is much higher than that of the second trader.

But please don’t get it wrong: just believing that a trade will work does not automatically mean that it will work in any case. Nevertheless, just by having a positive mental trust (or mental belief if you will), the first trader will see completely different possibilities in the markets. And even on losing trades, he will be able to analyze the trades in a different way. He will recognize what he did wrong and what he can do better on the next trade. In other words, he will always discover something to move forward in its trading.
The second trader, on the other hand, will usually get confirmation that the trading system or trading in general, is not working. But it’s not the system, it’s just his negative mental trust preventing him to move on.

 

What Is the Problem With the Tips and Tricks for Trading?

 

Most trading tips and tricks are usually designed to fool ourselves. This is because humans are not made to be successful in the stock market. For our problem is that we have the wrong mindset when we start trading. We also cannot imagine certain things.

A simple example: If you tell someone today that you make a 10% profit on the stock market, most people will just shrug their shoulders. Because 10% sounds like little and most would say that you can certainly earn more elsewhere.

Why is it so? Quite simply because nobody can imagine the effect of compound interest. Nobody can imagine what can become of 10% compound interest within a period of time, and what unbelievable sums of money can arise from it. Our heads are just not made for it. However, what it is made for, and you see that very often these days, is that people are looking for a quick buck. What they want is to make a lot of money in a short period of time, and they are blinded by the few people who have made it through a lucky coincidence.

 

This Is How You Can Gain Mental Confidence For Trading

 

Now here comes the trick to gaining mental confidence in your trading. But even this trick is actually of that kind to outwit yourself. But it’s quite helpful for newcomers to gain that confidence they lack in the beginning. And it’s also relatively simple, so at first glance, it doesn’t seem helpful at all because it’s so simple.
 

mental trust
 

The solution is: as an (absolute) beginner in options trading, set up trades where the probability that you will suffer little or no loss is extremely high!

Sounds simple and maybe nothing new for you? Are you disappointed now because you might have expected an academic or complicated, secretive approach? Then ask yourself now: have you already thought about it and have you implemented this idea? I already know which answer most people have in mind right now. The answer will be: “No, I didn’t implement it”.

If you’ve already done it, then congratulations, you don’t need mental confidence in your trading anymore because you already have it.

If you haven’t tried this trick yet, I’ll briefly explain how you can make such trades to gain mental trust:

 

Four Steps Of How To Gain Mental Trust In Trading

 

1) Choose an underlying that suits your account size. For example, if you have $3.000 available, then you shouldn’t pick an expensive stock, and for sure not a future. If you have $50.000 then you are also welcome to try it with a future contract or with a stock that costs e.g. $60 – $70.

2) Pick a strike that is so far from the current price of the underlying that you would make no money or almost no money. For example, such a strike could net you $0 after fees, or maybe $5-$10. A suitable delta for such options could be in the range of less than or equal to 5, i.e. delta 5, delta 3, or even delta 1. Just search a bit and you will find a suitable underlying.

3) Think of a strategy where you not only make little money but also lose as little money as possible. By picking a far-out-of-the-money strike, you already have a good chance that the trade would develop in your favor. But there is still a residual risk. One way to protect yourself and limit the loss further is, for example, not to sell naked calls or puts, but to set up spreads. This makes sense, especially for expensive stocks or when you want to sell options on futures.

4) Observe what happens. Even if the position should develop negatively, hold it! Don’t close it and don’t adjust it! Because if you followed the instructions, you should have positive results at least in 95% of all your mental trades. And with positivity, I don’t mean earning money, but seeing that your idea worked. And the positions that performed negatively should bring you just a minimal loss.

Even if I repeat myself: this trick is very simple, but it has a great effect. For this exercise causes something positive in you. The reason for this is that you also sell an option in the expectation that it has a certain probability with the trade you have set up. For example, if you trade at Delta 10, you have a theoretical 90% chance that the trade will work. Of course, despite such a high probability, the trade will go against you.

Hence, what we’re doing with this trick is just seeing how it stacks up with probability. That means what comes out at the end of the trade doesn’t matter at all. What is important is that the trade ends up showing you that it will meet the probability that you expect in the end (and in most cases, it will do).
What is the positive effect of this exercise? Financially, it doesn’t bring you anything at all. But if you are a complete beginner and have doubts (and you will have them), after 20-30 trades of this type you will see that the stats are going in your favor. It also doesn’t matter whether you will set up trades with the trend or against the trend. Because of this exercise, the probability of a loss is very low.

But this simple exercise gives you so much mental trust that you can then start trading certain account sizes with a profit. In other words, you will start actually making money trading options!

 

Final Words

 

If you have never dealt with options trading, you will not have confidence at first and also doubts. But it’s not your fault because it’s absolutely normal – options trading also has to be learned before you get profitable. And in my experience, you usually don’t come to options trading as a complete beginner, but you have had other experiences before, e.g. in day trading, forex trading, etc.

And usually, those experiences have been negative ones. Because if they were positive, you probably wouldn’t know or wanted to know about options trading if you had success with other trading opportunities. These negative experiences have therefore shaped your mental image.

Therefore, you must first condition yourself positively. And when someone tells you to have faith, it usually has no effect. Because one thing is theory and the other you have to experience for yourself to gain mental trust. With this exercise, you can increase your mental trust enormously. And the best thing about this exercise is that not only will you learn a lot about options and options trading. You’ll also learn a lot about yourself.
For example, you can also write down how these test trades make you feel. Because we are not talking about paper trading here, but trading with real money. And if it’s just $10, it’s always different when it comes to trading with real money. But this is actually enough to get to condition you positively.
And if you’ve already taken your first steps in options trading and haven’t had success, just try this simple trick. I can assure you that you will be able to gain mental strength through this. And this one will take you to a whole different level in options trading.

 
 




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Posted by Martin March 01, 2023
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02.28.2023 – TUESDAY MARKET OUTLOOK


Market Outlook
 

Another zig-zag day and selling based on no news. Only fear of FED. But that is a known issue and worrying about a known issue is usually wrong. Bearishness again increased to January 2023 lows (after which the market rallied 10%), so the odds are we will be seeing a bounce. Of course, nothing is guaranteed and it may not happen if some news that spooks the investors pop out.

 
Market Outlook
 

Right now, the markets are still holding critical support around the $4,000 level. There is a “wall of puts” at the 3,920-3,940 level so if we happen to go lower, these levels should provide additional support. However, the technical odds are still “down” and we will need more conviction from the bulls to turn this around.

 
Market Outlook
 

The daily Ichimoku chart got worse and the price dropped all the way to the top of the cloud. On one hand, I expected this move as we had too much “white space” between the price and the cloud. But now, that we have arrived at the cloud, it needs to hold and we need to bounce from here to save the day. If we start breaking down, we will see more troubles.
The weekly chart is at the same undecided level. The price has a hard time breaking above the cloud. The chart is sideways with a bearish outlook.

 
Market Outlook
 

The market was supposed to rally, but instead, it was trading sideways and selling off at the end of the session. There was simply no support buying and other charts didn’t confirm the trend. Tomorrow the trend forecasting suggests a choppy trend that should end bullish but again, we do not have a confirmation from the other charts so odds are that the market will end flat to down tomorrow.

 
Market Outlook
 

This is a delayed outlook. If you want to learn more about our SPX weekly analysis, subscribe to our weekly newsletter.
 




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Posted by Martin March 01, 2023
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Technical view: T-Mobile US, Inc. (TMUS)


Technical view
 

TMUS is in stage #3. The stock struggles to break above its all-time high at 155 a share. It bounced off of it and falls lower. The trend is still intact but already vulnerable. On the weekly chart, we are seeing a V-shape recovery from 2022 lows, but it may also turn into a cup-and-handle pattern. If so, we will need to form the handle and that may send the stock below $130 a share.

 
Technical view weekly
 

One reason for price stagnation could be stagnating revenue. The company saw a very strong boost in revenue during and after the Covid lockdown but then moved sideways. In previous years, the company saw steady revenue growth. Not anymore.

 
Technical view weekly
 

The free cash flow of T-Mobile is horrible.

 
Technical view weekly
 

TMUS has enormous debt and very little cash to pay it, though lately, the company was paying the debt of:

 
Technical view weekly
 

Technical view weekly
 

Fundamentally, TMUS is overvalued. But we received an estimate for 2025 already, and it is higher by a double-digit number. Buying today would mean a 14% annualized return by 2025, which beats the market. So, although the stock is overvalued, it is a good buy for future valuation. As of today, the stock appears to undergo a time-based correction.

 
Technical view weekly
 

The stock is now HOLD
 

This post was published in our newsletter to our subscribers on Saturday, February 25th, 2023. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.
 




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Posted by Martin February 28, 2023
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Stocks additions to the watchlist (JXN, CVS)


Our strategy is to be accumulating assets and then monetize those positions by selling options around them. We are constantly looking for good quality stocks that pay dividends (but also growth stocks), have decent dividends that are safe and growing, and can be optionable. And that is why we are adding two new stocks to our watchlist (JXN, CVS):
 

Upon reviewing a few stocks, I am adding Jackson Financial Inc. (JXN) to our watch list and start accumulating the stock. Our calculated fair value is $344.98 and the stock is trading at $45.38, so there is a huge potential for a 104% annualized return by 2025. Note the stock may stay below the fair value for years, so do not immediately assume it will skyrocket from $45 to $344 in two years (though it may, because anything can happen).

 
Our second addition to the watchlist and potential accumulation is CVS Health Corporation (CVS). That’s a good old health services provider, so nothing new and spectacular. What is interesting about this stock today is that it is also trading below its fair value ($150.29 a share), providing a potential for a 23% annualized return in two years, started growing the dividend again, and has rapidly growing revenue. The only concern is the debt which is quite high but the company started decreasing it.
 

The technical analysis of these stocks will be also added to our Newsletter.

 
 




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Posted by Martin February 28, 2023
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02.27.2023 – MONDAY MARKET OUTLOOK


Market Outlook
 

We received the durable goods report before the bell and it didn’t look good. The market popped initially on the bad (good) news but during the day we lost steam and gave away most of the gains.

 
Market Outlook
 

The market is still sitting on the major supports but the odds are to the downside. These haven’t changed yet although they may change anytime.
The daily Ichimoku chart is getting worse speaking to the bearish odds:

 
Market Outlook
 

The weekly chart still shows no improvement either. But if we continue sideways it will improve naturally, LOL. As of today, we are still in a sideways range bound trend:

 
Market Outlook
 

The market sort of behaved as predicted, we had a pop-up and a retreat. Tomorrow, we may see a new uptrend:

 
Market Outlook
 

This is a delayed outlook. If you want to learn more about our SPX weekly analysis, subscribe to our weekly newsletter.
 




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Posted by Martin February 24, 2023
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02.23.2023 – THURSDAY MARKET OUTLOOK


Market Outlook
 

Today, we were supposed to crash and not recover. We crashed. And we recovered. That shows how resilient this market is. At first, the early gains turned red and all hope for a good green day was lost. But then, the supply of sellers dried up, buyers stepped in and we reversed the course rapidly. The market finished in green and that is what matters the most. Not how we start with all the impulsive investors chasing their yesterday missed moment, but how we finish seeing the big money stepping in.

 
Market Outlook
 

And that is the most important thing. This can gain good momentum tomorrow and big guys may continue buying. If that happens, that can set the tone for next week’s trading. If this plays out, the current selling would be a pullback – which provides a great opportunity.

 
Market Outlook
 

The daily Ichimoku chart continues flashing its bearish trend but it is filling the gap between the price and the cloud. Yes, that white space was concerning, indicating the market was overextended to the upside. Now we are sitting almost at the top of the cloud. If we bounce here and continue higher hugging the cloud, consider this a perfect bounce and confirmation of a new bull market.
The weekly chart still has work to do but it will take weeks before we see any effect. So far the trend is still vulnerable (but improving).

 
Market Outlook
 

Given the momentum we saw today, I think the forecast will be correct tomorrow and we will see a green day:

 
Market Outlook
 

If you want to learn more about our SPX weekly analysis, subscribe to our weekly newsletter.
 




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