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Weekly Report 2022-11-13

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WEEKLY MARKET SUMMARY 


Last week's analysis of the SPY (S&P500 ETF)

- Monday. A moderate gap up at the weekly open is followed by overall bullish pressure. However, during the session, bears step into the arena temporarily pushing the daily lows below the previous week's close.

- Tuesday. New gap up at the open. Another green session but with a small body candle and long wicks both higher and lower, is showing a high level of indecision.

- Wednesday. A new wave of selling pressure spreads quickly across the market. A long, solid red candle with almost no lower wick brings prices to their weekly lows. In a matter of a few hours, all the profits from the previous two days are gone. Fear is back again. 

- Thursday. A massive gap up at the open is followed by strong bullish pressure throughout the session. Prices are breaking the September highs and moving quickly towards key resistance at the 400 level.

- Friday. Fourth opening gap up of the week. Despite some temporary indecision, bulls are still in control and keep moving prices towards a test of the major 400 resistance level.


What to expect in the coming week

- Bull Scenario. A break of the 400 resistance might extend the recent bull run much higher and signal we are getting out of the long 2022 bear correction.

- Bear Scenario. With prices overextended to the upside after the recent bull run, a failed attempt to break out of the 400 resistance level might trigger a new wave of panic selling and a new leg to the downside. 


Weekly market performance (Week 45/2022)

 S&P500 (SPY) +5.89%
 Nasdaq100 (QQQ) +8.80%
 Dow Jones Industrial (DIA) +4.21%
 Small Caps (IWM) +4.60%

After an explosive bullish week, the Market Volatility Index (VIX) is now dropping back towards the bottom of the 2022 range.

 

WEEKLY TRADING SUMMARY 


Last week's update of my Wheel Strategy Portfolio within the Options Trading Club (OTC)

At the moment, the main goal for this portfolio is to collect premiums by selling covered calls to lower the adjusted cost basis of the shares and, consequently, the overall risk of the portfolio. In the process, I am also looking to get some of the shares called away to free up some capital and reduce the number of stocks in the portfolio.

With the position deep ITM I rolled out TNA 11/11 CC $34 to 11/25 CC $34 for an additional $0.42 net credit

 

After letting the first 100 shares on WDC be called away last week, I let the 11/11 CC $36 expire ITM and got the second 100 shares called away. Now I don't own any more shares of this company.

 

I let the KWEB 11/11 CC $23 expire ITM and got the shares called away.

 


Last week's update of the MIM Portfolio (run by Trader64) within the Options Trading Club (OTC)

So far this month, we have closed five trades, all for wins. The average AROI on these trades is a remarkable 295.8%, and we have generated $190 in cash by trading one contract per trade.

We have now been on a winning streak for over 47 weeks. That is a pretty darn good performance, especially in the volatile and bearish market that we've been in all year.

Keep in mind that we will take a loss every now and then, but the profit generated with this strategy alone in only two weeks has been almost enough to cover the subscription to OTC for a whole year!


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

Take care and trade wisely!

Gianmarco 

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