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Weekly Report 2022-09-25

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WEEKLY MARKET SUMMARY 

With the SPY (S&P500 ETF) gapping down at the open on Friday and pulling to the 2022 lows, we are not far from testing the major support level around the 360 mark, which, if broken, could spark a new wave of panic selling towards the pre-pandemic highs around the 340 level. In the worst-case scenario of losing this second key support as well, an extended free fall could push the correction to the test of the 300 level. 

On the other hand, the red hammer candle (upper body with a long lower wick) and short-term oversold conditions on the daily chart could mean that a much-needed bounce from the 360 support is coming soon, like the one that started in the middle of June. 

 

Weekly market performance (Week 38/2022)

 S&P500 (SPY) -4.57%
 Nasdaq100 (QQQ) -4.77%
 Dow Jones Industrial (DIA) -3.96%
 Small Caps (IWM) -6.53%

Market Volatility Index (VIX) breaching the 30 level for the first time since late June.

 

WEEKLY TRADING SUMMARY 

In a week with very little activity on my side inside the Options Trading Club (OTC), primarily due to these extended crazy market conditions, I wanted to share the weekly commentary about the Small Account Challenge written by our amazing moderator RoRo, who is also the creator of the challenge.

"The markets were down over 5% this week, and come Monday morning, we will be testing the June lows. 
I personally believe this is a great time to be putting together a shopping list. I'm not saying the bottom is in quite yet... but some great names are at prices that are bound to be higher sooner than later. This presents a great opportunity for everyone involved with The Small Account Challenge. 

As we all know, our available funds are limited, but if used wisely, I think we are entering a period where the possible rewards far exceed the potential risk. Just remember to trade smart.

Our top 3 traders stay the same as last week, @skumartrades, @Gianmarco  and @merlster  Each managed to collect a bit more credit during this down week, adding to their already amazing returns.

Congrats to our newest participant, @Imre, who just joined the challenge and has picked up a bit more than 3.5% return on the account in his first week.

It's been interesting to see the trades that people are taking. Some are playing the short term, trading weekly options. Some have taken a longer approach, collecting more premium but potentially tying up the trade for an extra couple weeks. Others, buying the stock outright and wheeling the positions. Still others are sitting on the sidelines, waiting for the dust to settle. Hopefully, this will be your week to take action".

 

SPECIAL ANNOUNCEMENT

The Wheel Academy is my private options trading coaching program designed to help traders take their skills to the next level and generate consistent returns in the stock market.

I will open enrollment for The Wheel Academy to new members at the beginning of October (but only for a few days), and I will host a FREE Live Webinar to explain how the coaching program is structured on Sunday, October 2nd, 2022, at 11 a.m. US Eastern Time.

During the event, I will reveal which options trading strategies are already available in The Wheel Academy and which I'll be teaching in the coming months.

If you want to register for the event, simply CLICK HERE.

As usual, if you have any questions, just send me an email at [email protected]

Take care and trade wisely!

Gianmarco 

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