Size matters....

 

 This week's Blogs

• How to avert financial catastrophe
• Tesla will fall 95%?
• The Top Five Regrets of the Dying
• A consistent bullish pattern emerging

 While stocks staged a strong comeback this year, the advance has been narrow-led by Apple (AAPL) (29x price earnings multiple), Nvidia (NVDA) (160x), Microsoft (MSFT) (32x), Meta (META) (25x), Tesla (TSLA) (59x) Amazon (AMZN) (N.A.), Alphabet (GOOGL) (24x), Salesforce (CRM) (900x), and Advanced Micro Devices (AMD) (110x) accounting for over 90% of the year's gains. This means that the rest of the market foundered as one would expect with interest rates rising, banks falling and the economy slowing...

 

 

Now about our daily trading activities in DW Family. Per today's price action, it was quite precisely following the trading range with the specified support and resistance and was indeed ending slightly in green. Another great profitable day for us💪😇 

 

Friday, April 21, 2023

Another choppy day expected with a bullish bias

The S&P 500 closed yesterday just above its  support around 4128-ish. So, the bulls still have the momentum. It may feel like a lot of volatility in the past week of choppy action. But, the index is only down seven points so far this week. This sort of action is frustrating for both of those aggressively bearish or bullish. That is what the market is doing what it does best – causing pain and confusion to as many traders as possible. But we are doing great with frequent daily incomes from the choppy market. 

Today is option expiration day. Anything goes. But, I'm guessing the market keeps up the choppy behavior it has experienced all week. SPX has support at 4120, 4113 and 4100 and resistance at 4150 and 4169. It tested the 4113 level yesterday, and then bounced. I suspect bulls will defend this level again today and I feel we may see a slightly bullish ending today.

As you may know, the VIX futures have a great prediction capability and are quite reliable. Not 100% of course but fairly prescient.  So far, it doesn't suggest a significant decline for the market for the next week. But the risk is increasingly higher when we go into May, the start of the worst 6 month season for the market. So we will continue to do what is working for us, only trading in the short term to get as much income as possible. 

Yesterday, we got a max gain from the SPX short spread. And today we will likely get another nice gain from SPY overnight spread. Stay tuned!