New Post

The highest ROI you you can earn in 5-minutes, Your investment being your time!

• Economic Data

• Market YTD Returns

• Option Trade Set ups

This week’s Economic Reports

Market YTD Returns

Option Trade Set Ups

TQQQ: Closed at 68.64. TQQQ was going sideways over the last two days and that may prove to be a ceiling around Friday’s close, a breakout to the upside may catapult the stock to the next resistance of 70.49. What may be a little cautionary is that the in the chart below the lower indicator is overbought, meaning many of the would be buyers have already bought thus fewer buyers to enter the stock pushing it higher, see the lower indicator in the chart below.

On the flip side there will news releases later in the week and the big one on Friday when J. Powell speaks at Jackson Hole. He may lay out his Fed Rate Cutting plan prior to the September Fed meeting where its predicted that the Fed will cut the Fed Rates by 25 basis points. In my opinion, they will cut 25 in September, 25 in November and 50 in December. All of this may propel the market to the highs of the year. And with these cuts the cost to borrow should come down pushing down interest rates across the board. We can’t predict the market however we can extract money form it regardless of how it moves. In fact, its these moves that afford us opportunity to generate Alpha - Alpha is a term used in investing to describe an investment strategy’s ability to beat the market, or its edge.

Support/Resistance Levels:

TQQQ: Closed at 70.53. We have the PCE release on Friday, the Feds favorite report on Inflation however a 25 babsis points cut is probably already backed into the September Fed meeting. NVDA, and AI bellwether will announce its Q2 Ernings after the bell on Wednesday. Currently the options market is indication a 15 point +/- move after the announcement. If the reaction to the earnings a positive it could not only propel the Tech heavy NASDAQ higher but may also lift the S and P 500 to all time highs this week. The employment data could also color the Feds current opinion on the state of a soft landing. In short its going to be a busy week.

TQQQ: Support- 70.12, 69.56, 68.55 and 67.14. Resistance- 71.39, 72.66 and then 73.89.

 However with NVDA news release these support and resistance lines may be breached on either side.

Trade strategy (Covered Calls):  If you own shares (long) look to sell the Aug 30 Calls, any strike calls between 773 to 75. You will still earn a nice premium on the higher strikes but should TQQQ move higher you can capture higher stock appreciation (more money). 😉

Trade Strategy (sell puts): If you would like to own TQQQ lower than the current price. Sell Puts (opening transaction) for Aug 30 expiration, any strike Puts between 68 down to 66.5. There are some nice premiums to be had and if the TQQQ closes lower on the week you will own shares at a lower price than current prices assuming TQQQ close below your strike price.

Thanks for reading,

Sanjog

Disclaimer Alert: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.