Weekly Market Overview & Trade Ideas
As we dive into another week of trading, let's dive into the nitty gritty that you need to know to be prepared. Here are the important events this week: - Tuesday, Feb 18: President Trump speaks at 9:00 PM. Be prepared for potential market reactions. - Wednesday, Feb 19: FOMC Meeting Minutes release at 2:00 PM. This could provide valuable insights into the Federal Reserve's policy direction. - Thursday, Feb 20: Unemployment Claims are expected at 214K, slightly higher than the previous 213K, at 8:30 AM . - Friday, Feb 21: Flash Manufacturing PMI and Flash Services PMI, both expected at 51.2, will be released at 9:45 AM. Market Analysis: - SPY: The SPY has broken out of its channel to the upside, reaching a new all-time high, as we predicted last week. The short-term bias remains bullish unless a series of lower lows emerge. - QQQ: While QQQ has broken out, it hasn't hit a new all-time high yet. Given the current momentum, this is likely to happen soon. Trade Ideas for the Week: 1. INFY $21 Cash Secured Puts: - March 21 Expiry - Minimum .40/contract - You can wheel it if you're assigned at a lower cost basis, otherwise collect your close to 2% in premiums on this one. 2. Small Cap Gap on RXRX: - Gapped up on news of investments from NVDA. 3. Earnings Trade on U: - Reporting Thursday in the Premarket. - Watch our earnings video in the classroom for specifics on executing this one. Sector Spotlight: - Tech Sector: Trading above the 5 SMA for 9 consecutive days, indicating strong bullish momentum. - Semiconductor Sector: Similarly, trading over the 5 SMA for 8 days, showing upward momentum. Trading Strategies and Considerations: For those exploring different trading strategies, remember to visit our pro community for more information on: - Long Term Strategies - Day Trading Strategies - Swing Trading Strategies What to Avoid: 1. Stocks with less than 1 million average volume. 2. Stocks trading so low that options contracts are more than $1.00 apart.