Special Weekend Edition
“I cannot give you a formula for success but I can give you a formula for failure: Try to please everybody.”
I’ve actually talked about my formula for success earlier in this newsletter (Hunting for the Holy Grail of Success).
I suppose time will tell if it’s true.
Anyway, I like today’s quote because it gives sort of the inverse side of the coin for success. The late Charlie Munger (Warren Buffet’s long-time business partner) said, “Invert, always invert. Turn a situation or problem upside down. Look at it backward.”
He wisely saw that sometimes the answer to the problem you see is by looking at the opposite, studying that, and then reversing it.
For example, if I’m struggling to find ways to grow my business, I can invert it. “What would I do to destroy my business as fast as possible?” Those answers will probably come easily. Then, just do the opposite.
You can apply this to almost any deep problem.
What would you do to destroy your trading account as fast as possible? ... Okay, now what’s the opposite of that? Let’s try that.
A useful exercise, perhaps give it a try.
Index Snapshot
See the Legend in the footer below
The indexes were up on Friday, but slightly down for the week. Crypto is struggling to find its way. Keep your eye on the “/RTY” or the Russell 2000 small cap stocks. The infusion of cash from rate cuts should help them creep up slowly. ETFs like IWM or TNA might be good charts to watch.Fear and Greed Index
The Fear and Greed Index dropped 9 points from last week. The slightly negative week, pulled the index away from the greed mode which is a great place to start next week.
Today’s Macro Headlines (Source: Yahoo Finance)
Yahoo Finance
Why it matters …
From the article …
“US stocks gained on Friday as investors breathed a relative sigh of relief over an inflation report that came in line with expectations. Wall Street also digested new data signaling souring consumer sentiment and President Trump's fresh round of punishing tariffs.”
There was a lot of noise this week, but the markets closed basically flat. This works so well with our system. We booked premium on Monday; watched the option values decay all week and get rolled for a lot more premium or close out of the money. A good week, indeed!
Report on Friday’s Expired Real Trades & Sample Trade Ideas
Real Trade Spotlight (Free subscribers):
Three real trades collecting $200 of premium for single contract trades. Average Return on Risk (ROR) = 1.65% for this week.
Sample Trade Ideas Spotlight (Free subscribers):
Average Return on Risk (ROR) = 1.31%
Sample Premium = $254 for single contract trades.
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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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