Special Weekend Edition
“I’ve continued to recognize the power individuals have to change virtually anything and everything in their lives in an instant. I’ve learned that the resources we need to turn our dreams into reality are within us, merely waiting for the day when we decide to wake up and claim our birthright.”
This is obviously coming out later than normal.
I had some things to do this morning and the day got away from me.
Shouldn’t be a problem because it’s the weekend. In a way, that highlights one of my favorite aspects of this trading system I use: it’s so safe & flexible that I can focus on other things and not worry about my trades.
Many days I won’t even have ThinkorSwim open between grabbing the screenshot of that day’s sample trade idea and my afternoon check.
The real wealth this gives me is freedom.
That’s a beautiful thing.
Index Snapshot
See the Legend in the footer below
The last couple of days this week were Forest Green! Setting all time highs in indexes is fun, but there is a side of me that gets nervous for a pull back, I have to admit.
Fear and Greed Index
We lifted from 27 to 33 since last week. This is a very strange situation. We are in the “Fear” mode while setting all time highs in the S&P and Dow. Normally, ATH’s mean “Greed” or “Extreme Greed.” This week has an FOMC meeting with the overwhelming likelihood of a rate cut, which should move some money from the sidelines (bonds and CD’s) to the markets. The “Fear” part could be scared bears hoping for a meltdown.
My crystal ball is still broken, but this could be an ideal recipe for a “melt-up” if we get some margin calls on the bears next week and they have to cover their short positions. This might cause a domino effect of short-covering buys which would put some reluctant bear money into the markets. I’m not saying that is what is going to happen, but it very well could.
Today’s Macro Headlines (Source: Yahoo Finance)
With the government shut down and key data frozen, the Fed's view of the economy is about to get blurry.
Yahoo Finance
Why it matters …
The headline is a hedge for the FED in case they want to hold off on lowering interest rates due to incomplete data because of the shutdown. They could certainly use that as an excuse as excuses are easy to create, but I really don’t think they will hold off on the rate cut. They have been “concerned” about inflation because of the tariffs since April and that “concern” simply has not materialized. I really do not think they have a choice, but we will know on Wednesday!
Report on Friday’s Expired Real Trades & Sample Trade Ideas
Real Trade Spotlight (Free subscribers):
Three real trades collecting $53 of premium for single contract trades. Average Return on Risk (ROR) = 2.53% for this week.
Sample Trade Ideas Spotlight (Free subscribers):
Average Return on Risk (ROR) = 1.56%
Sample Premium = $111 for single contract trades.
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Because it’s Saturday, Premium subscribers get the Special Weekend Edition, including:
Upcoming earnings to watch out for this week
A look at next week’s bullish/bearish tendencies
Spotlight on the Indexes
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