This week was a wild ride with the market going bullish. But will it stay that way?
Friday we closed a few cents above the 200 EMA on the daily. Let’s hope this holds.
Finviz Weekly Heat map – Market Summary for the Week of January 16th, 2023
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.
The VIX dropped around 16%, and the Fear and Greed Index increased by about 16 points from Neutral to Greed.
🟢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 season is getting busy with more banks reporting next week.
There are increasing reports of the “Airbnbust” for airbnb. Thousands of wealthy and upper middle class people that purchased properties for short term rental purposes over the last couple years can no longer keep them occupied on a regular basis.
Let’s stop lying to ourselves, inflation has sucked for decades! We may be fooling ourselves to think that this is a new phenomena of high gas prices and expensive eggs after a Pandemic. But do not be fooled.