This has been another wild week!
Expect this weeks plunge and reversal felt like a rollercoaster.
Yesterday's rug pull on hotter than expected inflation numbers saw broad market indices open 2% lower.
And it looked to be a very nasty day.
But then we saw one of the biggest market reversal's in history.
And that had many or those talking heads saying the bottom was in.
Even though today's weakness didn't retest the lows, we continue to see the market have any follow through higher.
As I mentioned before, the most difficult part of navigating a bear market is that you never know when the rug might be pulled out from under you.
This continues to be a day traders market.
Which is why I didn't issue a new Hot Money alert this week.
It can be frustrating, but good thing we didn't force anything and remain patient.
Let's take a deep breath and stay calm and focused.
It's about making money, not being a fool.
The CBOE Volatility Index (VIX) closed this week at 32.
That’s a 1 point increase from last week.
That's interesting because despite massive rally this week, uncertainty still remains elevated.
And that means we will continue to see those 100 point swings in S&P 500.
Now let’s talk shop.
Here’s a recap of what we did this week.
We sat on our hands and did not enter any new trades.
Right now, we’re holding:
- VTRS Oct 21, 2022, $10 call
Have a great weekend and it's time to enjoy a ice cold spicy margarita - TGIF!
Joshua M. Belanger