Another 52-Week High In The Market

THE WEEK

The stock market hit another 52-week and all time high again this week.  In spite of all the global turmoil, our own political picture and inflation, the Market keeps inching higher day-by-day without much drama.

S&P 500

I find this a little confusing that there isn’t more drama.  One day last week I tuned into some political and economic broadcasts to hear how other commentators are viewing the Market.  I heard much the same thing as I have been thinking.  They were all considering the underlying reason for the quiet Market.  Many were pointing out how strong the economy is currently.  I disagree.  I feel it is unbalanced.  While many businesses are doing well, I know people are struggling to make ends meet.   In talking to my friends and acquaintances, I have asked about prices and how it has affected their spending.  I know I am spending about $100 for my food and basics each week and it has stop a lot of my impulse purchases- no more Amazon recreational spending for now.  Some folks on my informal survey said the same thing.  For instance, they are not eating out as frequently.  Surprising to me, many said they are using their credit cards to maintain their same living style.  As one guy said to me , prices will be coming down soon as the Feds lower interest rates and then I will be able to pay off my cards.  All I can do is shake my head in bewilderment.

LOOKING AHEAD

There are no major government economic announcement scheduled for this coming week.  We are be in the midst of the heavy Earnings Announcements.  I have been tracking the number of companies who are exceeding the analysts’ estimates.  I am looking for correlations between the announcements and the trading herds’ reactions.  Just a small preview – this quarter to date 79.3% of the announcements have beaten the analyst’s estimates.  

HOW AM I DOING?

It was another good week.  My gain for the week was 5.1% on the trading account I trade live for my subscribers.  It was difficult for me to do better as Market was slightly up with a sideways tendency.  When there is no drama the Implied Volatility drops.  This affects option pricing.  They premiums generally went lower as the week progress.  I need a little more volatility to do really well.   

This Thursday’s Webinar

I know that having a daily trading plan is critical to my success.

The topic is a little dry and frankly boring.  BUT it is necessary.  

It reminds me of the old joke about the man desperately praying to God each day to win the lottery.

One day the man finally hears from God, “It would help me if you would buy a lottery ticket!

A GREAT TRADING PLAN IS YOUR LOTTERY TICKET.