BY ANDREW GIOVINAZZI
May 23, 2024
Yo Pit Crazies,
3 months of rising inflation again! Terrible!!!! What happened to the Inflation Reduction Act? Free college tuition? Massive Government spending? I thought all those things would help reduce inflation? I guess that did not happen. Do you know what else did not happen?
A massive selloff in SPX.
2 months ago a group of Fed Governors jacking rates would have caused the market to swoon 100 to 150 points in SPX instantly. That did not come to pass. As you have heard here many times, any serious trader or investor knows the Fed can’t and won’t lower rates with USGOV spending this high.
Stocks are totally focused on growth for now.
So will Nvidia Corp (Ticker: NVDA) keep leading the market higher?
Weekly Profit Cycles really does not care which way the market goes, but it can lean in a direction.
Leaning just means I have a bias in my trade, up or down. With a two-way trade I can get away with that because there is some time to expiration and if a direction picks up the opposite way my trade still has a chance to pay.
I bought an Invesco QQQ trust (Ticker: QQQ) strangle and some VIX puts late in the trading day Wednesday, I leaned long because I thought NVDA earnings would be good. Also they are splitting 10 for 1 so that should add a little fuel to the fire. The VIX puts should help pay any drop in volatility post-NVDA earnings. Normally I dont trade QQQ in the Weekly Profits Cycles strategy but this NVDA earnings cycle should propel the market.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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