Market Summary for the Week of January 16th

This week was a wild ride with the market going bullish. But will it stay that way?

SPY

Friday we closed a few cents above the 200 EMA on the daily. Let’s hope this holds.

Keep an eye on the longer term weekly as well. Still much work to do.

Finviz Weekly Heat map – Market Summary for the Week of January 16th, 2023

BTC

Now up about 25% YTD, even with the SEC going after Gemini, Genesis, and the House moving to regulate the crypto industry. Maybe people are excited about the upcoming halving in 2024?

Yields & Bonds -Market Summary for the Week of January 16th, 2023

The 10 year rate was down about .17% this week.

When yields decline, bonds go up. TLT is the longer end of the curve, so TLT rose almost 2%. Last weeks Hot Trade for a bullish TLT put spread worked out nicely, so I repeated it–see Hot Trade section in this newsletter for more.

Dollar Decimation – Market Summary for the Week of January 16th, 2023

Down this week around 1% with easing CPI data. If you believe the dollar will continue to fall, pick your favorite ETF representing the Pound, Australian Dollar, Euro, or Yen then speculate by going long.

Speaking of inverse relationships, take a look at the rise in Yen futures over the same period.

The VIX

🟢Hot Trades – CLOSED TLT Bull Put Spread for Profit

TLT –  After closing the 93/98 bull put spread on Monday for a $37 profit,  I repeated the same trade again by selling to open another one. I sold the 95/100 for .81cr. On 1/12 I bought to close this for a .38 debit, making $43 profit for the 2nd one, and 80$ for both.

Earnings

Earnings season is getting busy with more banks reporting next week.