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. 

Bad Earning Report =Buying Opportunities

• Goldman Sachs had a great earnings report, but went down during Tuesday's trading session. Boeing started up  went down a little and back up a little. Home Depot and Best Buy were strong today as they were lead by positive news from Walmart joining forces with Microsoft to combat Amazon. The Fed Chairman gave a testament to Congress this morning where he was grilled about the treatment of the banks. 
• Netflix subscription miss caused their stock to get over sold in yesterday's after hours session. Alphabet (GOOGL) and Amazon were drug 20 points lower yesterday after the market close which clearly didn't make sense as they both moved up past their recently set all time highs by lunch time. Netflix went up taking back more than half of what it lost yesterday. I would not be surprised if it went down for the rest of the week.
• Pick a Call Option out of the money below the all time high for either Alphabet or Amazon at market open and you would have tripled your money if you had the guts to hold on until noon. Brings me to another learning lesson, but first the chart:
  
• LEARNING LESSON: When one of the FANG stocks has bad news, it will create a buying opportunity for the unrelated others. 

FANG is Struggling but not Dead!

• The Dow Jones was up today which was surprising given how so many people do not like how friendly President Trump was when meeting with Russian President Putin today. Boeing had a nice move upwards today and Amazon opened above it's all time high that was just set on Friday. It moved up sharply and at 3pm when Prime Day starts, they had website issues and it went down along with the rest of FANG. Facebook did hit a new high this morning also.
• Netflix was downgraded again today. They opened to the downside, moved up, but the big news was their 2nd quarter earnings report. It was announced after the market close on Monday and it went down over 50 points due to not increasing their user base as expected along with the expectations of new competition. 
• Alphabet (GOOGL) initially opened down and moved up sharply this morning. After it's peak around 10:20am it went down and further down. There was a nice move upwards in the last half hour after the big drop from Amazon. I do not like holding options over night because you have no control of your contracts in the after hours. Alphabet dropped down below 1180 in the first half hour after close and came up a little. There is no telling what is going to happen tomorrow with the FANG names as it could depend on Amazon's Prime Day success, what is said on the Netflix earnings conference call and if money leaves other FANG names to go into a more stable Alphabet. There were some opportunities using Call Options with GOOGL today that I will illustrate below: 
  
  
  
  
• Bank stocks lead by JP Morgan moved higher on Monday. It was strange how JP Morgan didn't move up after reporting earnings on Friday. It may move even higher on Tuesday if Goldman Sachs produces favorable numbers before the market opens on Tuesday.