Yo Pit Crazies,

Strap in!

Over the next few days, I will bring out my best ideas for 2023. 

In July, Mark and I introduced the Div+ Strategy for ideas to do and ideas to avoid. On the list of stocks to avoid were Tesla Inc. (Ticker: TSLA), Amazon (Ticker: AMZN), Apple Inc. (Ticker: AAPL), and Zscaler (Ticker: ZS): 

One-year stock chart of TSLA with one-minute candles.

For the most part, they all look like TSLA, with the brief inflation respite, and then reality set in that the Fed would continue to be aggressive.

The theme then was earnings multiple compression and, sad to say, it is still with us.  That will be a trend for 2023 so most growth stock should have a less-than-stellar year.

The trend for 2023 I like is …

Dividend Paying Energy Stocks 

Generally what happens in market cycles is they overcook one way and undercook another.

2021 was massive growth and now everyone is hitting the exits. 2022 was the year of energy in general now that folks see that the green energy revolution is some years away thanks to near-catastrophic energy shortages in Europe. There will be good returns here but not like 2022. 

I can see altering my Div+ Strategy here and I’ll have more on that in the days ahead.  KinderMorgan Inc. (Ticker: KMI) yields 6.9% and has a chance of 10% capital appreciation this year. The new Div+ should goose that a bit.

The Rundown

SPYMaster

SPDR S&P 500 Trust ETF (Ticker: SPY) and VIX Dec. 30/Jan. 18 390/375 put vertical spread, 410 calls, 24 puts closed for a 14% gain. SPY Master has won 11 of 12 closed positions recently with a new position opened yesterday.

Vol Edge 

Mark got a nice Christmas gift as the VIX Dec. 21 21 puts closed for a 127% gain 

To Your Trading Success,

AG