The market went up last night. Every single index was up – the Nasdaq was up 1.21% while the Dow Jones Transports were up 1.22%. The Russell 2000 was up 0.77%, the S&P 500 was up 0.73%, and the Industrials were up 0.57%. The UVXY, a measure of intraday volatility, was down 5.71%.
The market is still strong, so disregard media reports that state the contrary! For example, the S&P 500 had a 3% correction from its June-highs and could still easily get above the all-time high of 2,453. It isn’t that far away from that number. The Dow Jones Industrials have barely had a correction at all. Yesterday the Industrials hit all-time highs.
Nvidia almost doubles in price in just two days
On Tuesday I advised you to watch the Nasdaq. I said if it broke the 21 EMA it could have a nice move higher. It closed above the 21 EMA on Tuesday and then last night had that big move up, exactly as I anticipated. There was exceptional money to be made on the Nasdaq.
One trade I recommended this week was Nvidia. I actually advised a live-seminar in London to get into this on Sunday, and the elite program got into it on Tuesday. The elite students bought the 150 call option for July for $6.70. That same call option is now worth $13.30. We have almost doubled our money. That is the power of what I am teaching. My advice to you was that if the Nasdaq breaks above the 21 EMA, position yourself for a big move up in the Nasdaq!
In the elite program my instructions are even more detailed. I told the elite students the option to buy and the expiry, and I showed them exactly how to set the trade up. The students have almost doubled their money. Tonight it’s time to roll up profits and create a riskless trade. Trading is all about managing risk and I will show the elite students exactly how to lock in profit. If you are thinking about trading options, begin by clicking here and watching my free training video:
The bottom line is that the markets are still looking strong. Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, testified in front of Congress on Wednesday. In a nutshell, she said that the economy is robust and the US can expect more rate-rises in the future and a reduction in the Federal Reserve’s bond portfolio. The market took that to mean that the economy is doing well and is nowhere near a recession. Ultimately this caused all the indexes to move up strongly, especially the Nasdaq.
Of course there are no surprises to see that the technology sector was up the most, 1.3%, a strong move up. There were a lot of opportunities within technology and the Nasdaq – especially the FAANG stocks: Facebook, Apple, Amazon, Netflix and Google – they were all looking good. Netflix was up 2.86%, a very big move while Apple was only slightly up, but Amazon was up 1.25%. Google was up 1.48% and Facebook was up 2.34%, I do hope you were looking towards where the money was flowing, given I gave you the heads up on Tuesday!
Everything is looking strong to me, the only exception is retail. In the elite program, we have some bearish trades in retail. XRT is a great index to examine retail. Looking at the XRT daily chart, you can see an obvious downtrend. Retail had a small move up last night, but to me still looks like a very weak sector in a strong market.
Tonight I will be locking up profits, especially in Nvidia. I am grateful to have almost doubled my money in two days. I am still looking at other opportunities within technology and have a couple to show the elite students tonight. They are just starting to break out! I am sure I can make good money on these. My focus is definitely on the Nasdaq and technology.
We are also approaching earnings season and there are a couple of trades I’m keen to get into. I am looking forward to earnings season and wondering if that will keep this market moving higher. The market seems to want to do that.
Janet Yellen speaks to Congress again today. Will that have any impact? The futures markets are just up slightly while overseas China is up in early trade, 0.61% and Hong Kong is up 1.03%. The European markets aren’t open yet, but had a strong day yesterday. Watch to see if the European markets open strongly. If they do, I would look for opportunities within technology and the Nasdaq in the US.