Navigating markets like a Seasoned Trader

THE WEEK

The Market has been on an upward trajectory since mid-November of last year.  New all-time highs are occurring every few days.  Last week trading was a little rough with both the CPI (Consumer Price Index) and the PPI (Producers Price Index) reporting prior the opening of the Market on Monday and Friday.  Economically both reports were good, however, they both caused sellers to step in pushing prices down.  I don’t believe either report will have a long lasting effect on the Market.

LOOKING AHEAD

This week the FOMC will release their meeting minutes.  The report may have a temporary effect but I don’t believe it will last more than a day at most.  I believe we will have a fairly calm Market for a while.  Why?  Inflation is very close to the 2% goal set by the Feds.  Company’s earnings are matching or exceeding projections for the most part.  The consensus is the Feds will start adjusting interest rates down in May which will improve the borrowing power of both businesses and consumers.  Mortgage interest rates will go down afterwards which will help the housing Market.

HOW AM I DOING?

I had an exceptionally great trading week because of two trades.  One was a bought PUT position on SMCI.  The price had shot up on news doubling the price.  I thought sellers would step in to grab profits.  I patiently waited for over three weeks, saw increased sellers’ trading and placed my trade. 

That’s what we learn in Investing Buddies – how to spot the set-up, how to be patient and then act quickly.  We are Thinking Traders.  The response to Thursday’s webinar was huge.  We discussed a trade I have been doing for a long time – a diagonal spread.  The webinar covered how I have tweaked the trade because of changing trading patterns since COVID hit.

This Thursday Deep Dive is all about the Princess Trade

SMCI was a Princess Trade

How to spot the set-up; How to time the entrance and exit.