Archive

Filter

Last week was the end of the first half of 2023, the stock market ended higher for investors with the S&P 500 ETF (SPY) advancing by an additional 1.2%. In a surprising turn of events, June witnessed the S&P 500 ETF (SPY) surpassing the tech-focused Nasdaq 100 ETF (QQQ) with an increase of 6.5%. While smaller stocks exceeded larger ones in June, the Russell 2000 only marked 8% YTD in comparison to the S&P's impressive 17%. Across the sectors, the technology sector saw a remarkable surge of 40%, despite four sectors recording a decline, with Utilities experiencing the biggest drop of 5.7%. The week we are going with a neutral double diagonal on Salesforce (CRM) and a bull call spread on DexCom (DXCM). On a side note, markets close at 1 PM Eastern Time today, and are closed tomorrow, Tuesday, July 4th. Read More

We have two rolls to finish off the first half of the year. The first involves JPMorgan Chase (JPM). Although its price remained between the short strikes on the double diagonal, the implied volatility did not increase enough to benefit the trade. We're also rolling our position in Humana (HUM). HUM's stock price took a significant dive due to fears of higher costs resulting from an increase in elective surgeries by seniors. To ensure we don't overpay to close the July (1st week) 490/500 put spread, we separated the HUM trade into parts A and B. Have a great weekend! Read More

This week marks the close of the month, quarter, and first half of the year, during which the S&P 500 has increased by 13.8% in 2023. Past trends show that if the S&P 500 has risen at least 10% by the end of June, it's likely to finish the year on a higher note 82% of the time, with an average gain of 7.7%. We can anticipate further news on the real estate market, including April's home prices and new home sales in May. On Friday, the BEA will provide the PCE Price Index, a key measure of inflation used by the Fed. Data on consumer sentiment from the Conference Board and University of Michigan will also be unveiled, together with the finalized Q1 GDP estimate. This week we are going with a neutral double diagonal on The Home Depot (HD) and a bull call spread on NextEra Energy (NEE). The data in the risk graph software was not updating for HD, so we will have to add the risk graph to the trade alert later in the day. Read More

Last week, the stock market eased into the extended holiday weekend. Key developments included signs of subsiding inflation and a pause from the Federal Reserve. The spotlight was on the consumer sentiment data, as the University of Michigan's index rose to 63.9 in June, up from 59.2 in May, signaling increased optimism due to decreased inflation and a resolution to the debt ceiling crisis. However, the survey suggested a continued expectation of economic challenges over the next year among most consumers. This week we are going with a neutral double diagonal on ConocoPhillips (COP) and a bull call spread on TJX Companies (TJX). Read More

Last week the S&P 500 broke into the bull market territory by hitting the 20% mark, with smaller cap stocks emerging as the new leaders. The index has decidedly snapped the downturn that had persisted since its zenith in the start of 2022, currently hovering midway from the lowest point of last October. This positioning suggests potential for continued gains. Looking at patterns from earlier bull markets corroborates this possibility. However, impending decisions from the Federal Reserve could be a significant hurdle this week. This week we are going with a super bullish call backspread ratio on PDD Holdings (PDD) and a bull call spread on Abbott Laboratories (ABT). Read More