It was a choppy session, but major US indices finished green before the close. Semiconductors shined today, and the energy sector got hurt the most. Overall for the week my buy and hold portfolio was down a little, but my options trades went rather smooth.
"I think the current inflation prints we're seeing ... reflect mostly transitory things, and they would calm down on their own. But I do think that once those pandemic-specific effects have passed through, there is going to be some inflation that is above the Fed's comfort zone," Tom Graff, Brown Advisory head of fixed income. "I think they're going to be able to take control of it, I think they'll start tapering QE in [the fourth quarter] and probably wind up hiking late in 2022 or early in 2023. And then the question just becomes, how many hikes does it take? How high do interest rates need to go to get inflation back under control."
I'd still be overly cautious right now as we do have inflation, transitory or not, plus the looming quantitative easing, plus historical data showing August/September are down months. Take profits early and don't go into large positions right now. Keep extra cash on the sidelines and if you don't feel comfortable with that, buy safer dividend ETFs, like SCHD, or stocks like O, and wait for another month before making big plays. The summer was hot, pun intended, so let's get ready for a cool down this fall.
I am taking on trading Apprentices this week and next. Here are some general tips I have given them. If you are interested in becoming an apprentice, it is free, please message me on Discord or email me. Limited spots.
Don’t go to big on the trades, relative to your account size.
Take profits at 20%~30% for now.
Don’t only get in one position, you need to be diversified. If 1 position sours, the other 5 will be decent.
Cut losses if you are down 10-20% or whatever you feel comfortable with. You can always DCA more into the position but this should be after careful consideration.
It’s not very hard to make money investing. The key is actually investing and not just trading. Forcing trades is the worst thing you can do. Positions will come. Be an expert on a few companies not every company. The trades will come to you.
I average maybe 1 per day.
90% of your portfolio should be put into longer term, safe choices. 10% should be short term options.
Announcing the New Crypto Alerts
Introducing Crypto Alerts Channel in the Discord Server, is now free.
I will be providing clear entries, stop losses, and take profit levels for coin pairs on Binance.com.
*This is still in Beta, trade at your own risk*
Positions this Week
$BTI +14.4% (Calls; Leaps)
$F -14% (Calls) - Will DCA next week, currently on support again.
$MA +3.8% (Calls)
$AMZN (didn't get a fill; will consider Monday)
$MS (Put - late trigger, will watch for confirmation candle Monday)
$MA -6% (Calls) - Cut and will roll out.
$AAP +49% (Calls) - Took Profit.
$EBON +40% (Puts) - Took Profit
$ETSY +25% (Calls) - Took Profit
$ABBV +25% (Calls) - Took Profit
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New Alerts Set
$MS put triggered at close today. Looks like it is bouncing on resistance, and might head down to the 50MA. This resistance dates back to June of 2020. It is overbought and the RSI indicates a consolidation is about to happen. $100 monthly puts are interesting.
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Disclaimer: The comments opinions and analysis expressed herein are for informational and educational purpose only and should not be considered as individual advice or recommendations. Prostockadvice.com is not responsible or liable in any way for opinions expressed here. This is not meant to be financial advice as we are not a licensed financial advisor.