End of a Crazy Christmas Week Trading

After yesterday's large market run, everything was poised to open lower today like yesterday. After the morning spike up, downward movement was coming. It was obvious that the movement was very muted today unlike past Friday's when Alphabet (GOOGL) would give up 20 to 30 points in one morning.

I decided that today I would trade options on the QQQ ETF instead of on Alphabet. I find that Alphabet's options are very expensive as are all of the FANG stocks, but this ETF moves with FANG and doesn't appear to have the premium pricing. I was very profitable with my initial trade. Unfortunately I tried to jump in on the other side too quickly without clear signals and gave back half of my profit. I also didn't have anything left for latter in the day when there was the largest movement from 3 to 4pm.

Below I have the charts for Alphabet (GOOGL), QQQ and TQQQ so you can see the similarities. I also made a quick video trading lesson on my YouTube channel.

Wild Thursday After Christmas

Slowly everything appeared to go down on Thursday until a bottom of resistance appeared at 2pm. At 2pm everything shot straight up. I took advantage of the initial rise, bought my Puts at the wrong time and then didn't sell on time, and didn't have anything left to take advantage of the awesome run in the afternoon.

This created a light bulb in my head, so I made a video about it

Day After Christmas Boom

What a day! The market opened higher and most stocks retraced to Monday's lows

before taking off higher. I made a profit higher than what I lost on Monday, but failed to wait for the right time to buy and I sold around noon instead of expecting the run to last the whole day which is typical for Wednesday off of an over sold condition.

I didn't trade Alphabet (GOOGL) today, but I did use it for reference as it was one of the only stocks that did not go down to retest Monday's lows. I bought call options on Boeing, Tesla and Netflix on the way down. I was down bad by the time it changed and went higher. I ended up selling everything around 12:30 pm and missed out on the other half of the gains for the day. I made charts on each company below.

I would expect to see more upward movement on Thursday with some pull back for the second half of the day and it should give back half of today's gain. I hope I am wrong, but I will trade carefully tomorrow. Check out my market commentary below along with my favorite pick for 2019.

Christmas Eve Market Movement

Everything moved together on Monday, Christmas Eve. If you follow my blog, you know I like trading Alphabet (GOOGL). On Monday, Alphabet opened near the Friday low and moved up. It got up to 992 then came back to 982 which was the buying point of Call Options. It appeared to pause at 1000 before shooting up to 1010 (sell calls and/or buy Puts) and then came down from there. From there it retested the upside at 1004 and fell for the rest of the day. The last few minutes of the shortened trading day it fell hard near the opening price. Many other stocks fell lower like Home Depot.

Check out my commentary video below

YouTube Intro

I have decided to provide market commentary and investment advice through my new YouTube channel and I will share it with my activity blog.

 Here is my first video of my beginning investments series.

Please like, comment and subscribe.

Trading Alphabet This Week

With the Federal Reserve scheduled to raise interest rates on Wednesday, this was going to be an interesting week for stocks. Everything is been very depressed and poised to go up. Alphabet moved up on Monday but failed to pass 1060. This proved to be a substantial area to keep in mind trade in for the rest of the week. I actually did not trade alphabet on Monday, but utilizing what she realized from Monday can help set up your trades for the rest of the week. The market has been up and down and pretty much flat by the end of the day for the past week and a half. Alphabet has followed the market movement.

On Tuesday, Alphabet ended up going up cautiously, but failed again to pass 1060. It went straight down from there. There's big money to be made if you can be patient for it. What was really interesting is how it bounced off of 1040 a couple of times on his way up to 1060. Once it got to 1060, it failed to go higher and went straight down slightly passed 1040. This is the optimal opportunity was to buy puts when it was at 1060 and sell them when it hit 1040.

Wednesday was unlike other days where the Federal reserve announced their interest rates as everything went straight up. Alphabet actually went up and hit 1075 where it failed like the prior

couple of days at 1060. it appears that most of the market was expecting that the Federal reserve would not raise interest rates war have favorable communication regarding a stop to raising interest rates. At 2pm when the rate was announced, everything went straight down and then it went up as Fed Chairman Powell began to speak. At that time he announced that they will be more data dependent and will probably have two more rate hikes in 2019. That is when the market fell further. But as you can see the chart of Alphabet, it bounced off 1019 and went all the way back up to 1040. This look very similar to last Thursday.

On Wednesday afternoon, Alphabet went back down to retest that bottom and stopped at 10:24 where it went back up to 1040. The stalking to the day slightly lower, but looks poised to rebound on Thursday and go higher. I believe when the analyst breakdown the words from the Federal Reserve, the market will have a nice balance from being over sold on Wednesday. That's not to say that it is going to continue going up all day. I would expect the second half of Thursday and most of Friday for the market to be down.

Trading Alphabet

This past week was like other weeks with the movement of the market and specifically with Alphabet (GOOGL). Tuesday it opened higher and went down just to finish the day near where it started.

Wednesday looked like it was going to be a similar day at start. Sometimes the prior days movement continues into the next day. Wednesday's open was higher, it moved up, retested the open low and shot up higher. From what I have seen is it move up to a 3rd top before changing direction. It was clear that it would not get past 1092. From that point you should exit all Call options and switch to Put options. Take a look at the chart below and I will continue with Thursday which is on the same chart.

Thursday was interesting because Alphabet moved up, but failed to get past 1090 which is where it peaked on Wednesday. That is a sign to buy a Put option and sell near it's bottom when it was at 1050.

Friday Alphabet went up after testing the open and moved up until it

came close to Thursday's close at 1071. It was nearly free fall for the rest of the day. See the chart to the side.

I started writing this on Monday. I will break down this week's charts next.

Update to the Market and Expectations

I stopped writing my blog a while back because I went to a trading class to learn to be better. I have found success in trading, but more importantly cutting my losses quickly, being more patient if to wait for my trade to be in favor, and switch positions when I got the direction wrong.

There is money to make going up and down. The bull market is still alive, but needs a pull back to go higher. Recessions are started by bank failure and we don't have any bank failure. We have banks that did some unethical practices, but they are not going out of business for it. As a matter of fact these banks have money set aside for such regulatory fines Wells Fargo and now Goldman Sachs is being dealt.

On Wednesday, I don't believe that the Federal Reserve will raise interest rates because lending is down, unemployment is going to rise, and the trade issues are hurting everyone. Unfortunately we still have Tuesday to get through first.

Tuesday always starts first in Asia and their markets are going to open lower and fall further. This will make our futures go down over night and we will open lower than today's bottom. The average retail investor will sell right to the people with the big money who are buying. Tuesday will be not go straight up until we know what is happening with the Federal Reserves interest rate hike.