Markets are at the second zone of resistance. Can we blast past this?

NOTE: I have been sharing my market outlook with our free readers frequently this year hoping that my insights help you navigate these tough times. This will be the last free market outlook going forward. I will continue posting these for paying members though. 

Markets have somehow managed to breakout of the consolidation/sideways momentum they have been stuck in for weeks and we are coming up at the 2nd area of resistance. On Friday, we saw the markets stalling slightly towards the close. Can SPY blast past $400 and get to the $415 area?

Well, we have such a busy week ahead of us full of major market moving events that you just need to let the week play out and tell you where we go next. 

The 3rd Edition of my book is available for pre-order on Kindle.

The pre-order for the Kindle version of my book’s latest edition is live now for $9.99. Here is the link:

The book will also be available free to all Kindle Unlimited members. As a reminder, this is not a brand new book and is a natural progression of the second edition and could be considered a go to reference for everything you have learned with me in the past 2 years (eg. the PNR method is now just part of the chapter on handling losers).

I hope you will find “Reading the markets like a Pro“, “The 2022 market correction” and the chapter on “Scaling up” particularly useful. If you do get the book, kindly drop a review for me. It will be greatly appreciated. Finally, I hope the markets give us a break this year as I also want to start working on a “work book” which will only have trade setups and quizzes to test your knowledge and refine your trade setup spotting skills. Almost, like the workbooks that kids use in school to practice the theory that they learn.

Spread Tracker is still holding ground through all the ups and downs so far.

I have been balancing my expirations between call and put spreads for weeks now. I have also posted details on discord when and how I decide to backfill put spreads for a particular expiration. The spread tracker is looking good despite high VIX and directionless markets. 

Market Moving Events – It doesn’t get any busier than this!

Last week was nice breather with hardly any market moving events lined up. But it was more of a lull before the storm. Next week is lined up with earnings from the big boys! As if that is not enough, we have the FOMC meeting and we get to hear about the next rate hike on Wednesday. The markets are expecting anywhere between a 75 to 100 basis point hike, but you know how these meetings go. Be ready to take on some trades on Wednesday (whether bullish or bearish)

A total of 28 stocks report earnings from our watchlist next week!

What a crazy week it is going to be. A total of 28 stocks from our watchlist are reporting earnings next week. For markets to go up, we need all the big boys to report good earnings and guidance in addition to the FED not doing anything crazy. I will most likely not take any trades on Monday or Tuesday and will add all my trades for the week between Wed – Friday.

Macro Analysis (VIX)

We saw a tiny 7 day long rally last week which helped push the VIX down below 23 for the first time since 4/21/2022. If we get good earnings and the FOMC meeting doesn’t go awry, here is the first chance for VIX to drop below 20 and we see at least a short term bull market. 

Key Takeaways

  • A very busy week lies ahead.
  • I will most likely not trade until Wednesday. Although, I will share a list of bullish and bearish trade ideas with you on Wednesday morning in preparation for whichever direction the market goes after the FOMC meeting.
  • The markets have a really good chance of seeing a continuation of this rally if earnings are good and Fed doesn’t do anything stupid

CHEAT-SHEET (Again no changes here)

No changes here, but looky! We are coming up to levels which could get us out of this almost 7 month long bear market.