Monthly options expiration day — the third Friday of each month — is always a crazy busy day for traders. And recent market action shows that “risk on” trades like Bitcoin and more volatile, beaten-down stocks are back in a big way.
I’m looking to do more live sessions with my members, so we held Friday’s regular weekly update in person instead of me uploading a recording for them to watch.
We went over several trades that are still actionable — including a stock I see having the potential to rip higher by the end of the month, so be sure and watch the video up top!
We also went over some of my trading philosophies, current market action and my near-term read on the S&P 500. I also answer questions…
So I figured this would be great to share with my Joy of the Trade readers today!
It’s the beginning of the year, so I’m taking into account what’s going on underneath the hood. So far, growth and tech stocks are back in fashion while some of the old, boring Dow names are struggling.
That’s not great for stable investing because you want everything to be in sort of lock step in being bid up.
But… It’s the beginning of earnings season, and the market is going to be much more of a stock picker’s environment. Some sectors are super bid, and some are super bearish.
What’s most surprising to me right now is the Hang Seng is soaring, up 11% year to date. So China is over-the-top bullish in comparison to say the Dow Jones.
For S&P 500, I’m leaning bullish in the short term. But next week’s earnings reports are going to be BIG in determining where the market stands.
There’s one thing in this rally that’s struck me as bizarre…
Stocks are rallying in the face of reported layoffs from so many major companies. So we have two things happening that can’t be true at the same time…
We have corporate America, and specifically big tech companies and banks — the two biggest things we export around the world, finance and tech — laying people off massive numbers of people.
You don’t cut staff like that when you’re making money. You do it because business is slowing. So I want to see guidance from these big companies reporting.
So while I’m leaning bullish, I have to see more info from this big companies. Check out my video up top and I’ll break it all down, and give you some actionable trade ideas on the house!
Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at jeff@joyofthetrade.com with your trading questions and I may cover them in a future video. You can also join my free Telegram channel, where I share market insights real time throughout the week, articles, videos and more!
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
P.S. 68% CANCEL Rate On New Builds 2022 Q4
Both 2020 and 2021 were great. People could lock in a mortgage for 2% — who wouldn’t buy their dream home??
But now… As the Fed continues to raise rates in hopes to cool inflation… And as interest rates still sit at 6.23%…
The housing market is cooling FAST.
Not to mention this recent report from KB Homes… A 68% CANCEL RATE in Q4 of 2022!
A house that once cost $1,000 a month now costs $2,000… forcing many Americans to rent!
But here’s the problem… The big rental companies? They’re buying up properties left and right…
And the cost to rent? It’s only going to increase.
I just revealed all the dark details of what’s ACTUALLY going on…
The housing crisis I see coming… The GIGANTIC investment opportunities that come along with it…
And how the next few weeks could affect millions of Americans’ lives.
