Hello Traders, Welcome to this week’s newsletter. In today’s newsletter, I am going to discuss one of my biggest positions going into Q3 and my thinking behind it. Last week, we experienced a rally as expected, and now all eyes are on this week to see if the rally will continue. One of the major … Read more
Hello Traders, Welcome to this week’s newsletter. The market is now in a rally mode after one of the worst weeks in history. This short-term rally could have been expected as market internals were demonstrating an oversold condition. This incredible chart by MrBlonde shows precisely what we experienced last week – three standard deviations away … Read more
Hello Traders, Welcome to this week’s newsletter. Tomorrow is the second day of the Fed’s FOMC meeting and this is the first time in the last few years that the market is completely clueless on what the Fed will do. On the one hand, traders are almost certain that a 75 bps increase will happen, … Read more
Hello Traders, I hope you are well and enjoyed your weekend. We are entering another week of uncertainty in the market. Are we heading for stagflation (high inflation and low growth)? Is inflation slowing down? The answers to these questions will definitely impact how the market reacts and moves this week. The Big Picture Sentiment … Read more
Hello Traders, I hope you are well and enjoyed your weekend. While I know this will be a difficult week for looking at your long-term portfolio, I want to provide some commentary that could potentially help in the short term. All eyes are on Wednesday’s inflation numbers. Has inflation peaked? Or, are we still running … Read more
Hello Traders, Hello to all of our new subscribers and welcome to this week’s newsletter. This is where we discuss the market and use a top-down approach to come up with a trading opportunity. The Big Picture The theme in the market remains the same. The yield curve continues to flatten and invert, and that … Read more
Long QQQ Short The VIX There has been an ongoing debate in the investment industry when it comes to value and growth. Value had a fantastic run after the dotcom bubble burst in 2000. However, the last few years of the 2010s tipped the scales in favor of growth, with many high-flying tech stocks returning … Read more
SPACs were the hottest thing in 2019 and 2020, however, in the first months of 2021, they have failed to outperform the S&P 500. So, what is the reason behind the recent underperformance of SPACs and are we seeing signs of a potential bubble burst in this speculative market? In this article, I am going … Read more
In this week’s newsletter, I am going to discuss the impact of rising rates on the market. We’ve seen a massive correction in many of the hot tech stocks that had run up by over 100%. In some cases, they’ve now dropped by as much as 50%. For example, Tesla, the market’s golden child, dropped … Read more