Markets are moving and yet as each day comes to an end it’s as if there has been little or no movement. Consider this, on Tuesday when markets opened (post-MLK day) the S&P 500 was at 2657, fast forward a week and it’s at 2664. Hard to believe that during the week we saw a low of 2612 and a high of 2672. That right there is a 60 point range, a 2.3% swing. Yet on a weekly level, we are barely up 7 points that’s not even half a percent. Here we are nearing the close of the first month in 2019 and there have only been 3 down days. Yes, you read that right 3. To the end of 2018, it seemed like investors and traders couldn’t buy an up day (no pun intended), in December the SPX saw 10 consecutive down days which popped volatility up above 35. It is now sitting idly in the high teens and in my humble opinion, this market could be getting ready to see volatility return once more. As mentioned to Astute Insiders (subscribers) there appears to be resistance at 2710 in the SPX, for the second week we have placed another trade taking advantage of that level along with having time work for us. How!? This is where utilizing the power of options comes into play.
So now the biggest and most important question that you should ask, “Why do I care?” and simply put, money is finite so effectively using it makes all the difference. That is exactly what we focus on at Astute Strategist. “What is best for my money?” The answer, it’s with you! That’s right, at Astute Strategist we do not manage money or trade for individuals. We simply find the opportunities and give you the reins, no management or performance fee. You execute, you yield, it’s your future.
Risk & Reward
With their being so little volatility thus far, we are now focusing on its return while also partaking in earnings season. Yes, it’s that exciting time of the year and having traded Intuitive Surgical (ISRG) this past week using under $6,000, Astute Insiders (subscribers) yielded a +20% return on capital. FAANG stocks are set to report next week. Click “Become An Astute Insider” above or subscribe and join us for the journey.