Is Credit Verticals worth the effort?

THE WEEK

In East Texas, there is a saying, “If you don’t like the weather just wait 5 minutes.”  It is constantly changing and in many cases the changes are violent.  That is how I have felt about the Market for the past three weeks – Hard up one week, totally flat the next,  then hard down and our last five days – HARD UP.  It is really difficult to get traction with longer time frame trades going.  Moment to moment you just don’t know what to expect.

Last week’s economic announcements were received as a positive sign by traders.  The COVID-19 Pandemic changed the world as we know it.  At the outset of the pandemic, people were stuck under stay-at-home restrictions, which caused businesses to shutter and snarled supply chains, GDP plummeted, the stock market crashed and millions of people lost their jobs.  The FOMC started raising interest rates in March 2022.  It appears for the first time since then the Feds are ready to start lowering rates.  I was hoping for 50 basis points but believe it will probably be 25 as that seems to be the general consensus.

LOOKING AHEAD

The big news for this coming week is the FOMC Meeting and Interest Rate Decision.  That occurs on Wednesday starting at 2pm.  I will be trading right up to the announcement but with some caution.  I do believe the Market will go up somewhat and then after the announcement spike up.  There are just a few companies releasing their earnings reports next week.  So other than the FED announcement I don’t see many factors that will cause the Market to be crazy.

HOW AM I DOING?

I was just an OK trading week for me.  After the hard down of the prior week I did not trust the price/action ups on Monday and Tuesday so didn’t trade aggressively.  Then on Wednesday the Market shot up and, frankly, caught me flat footed.  It wasn’t until mid-day that I started having confidence that the Market was truly shooting up.  I missed a lot of the trend.  My one very bright spot was the long CALL on GLD.  It has still been a good trading quarter in spite of last weeks bumps.  I have talked to quite a few  of the traders in our Quantum Trading group.  Generally, they are also having good trading quarters.  The one complaint is because the Price/Action has been erratic, their trading has been rough.  It is times like these that I stop doing trades that take a longer time to develop and focus more on trades that last only a week.

That is the subject of this week’s Webinar.

Credit Verticals and why they work in short run times.