High Heeled Traders

That Was Last Week

September 9, 2015

Just like magic, a few days back from holiday and it seems the world is a different place from last week! I am not one to spoil a party so I say take the plunge and ride the bullish sentiment. Yesterday’s bad China trade data – a bad export figure (down 6%) and even worse import (down 14%) is indicating sloooowwwwinnng growth but it seems, with China’s government ready to do the heavy lifting, the bad news is good news. Everyone can heave a sigh of relief.

Now, just remember, there is that US Federal Reserve Interest-rate setting meeting next week, so enjoy the positive sentiment but beware.

This is how it looked at the previous US session, fun opening and the first few minutes reached 2-3% highs for a lot of stocks — pushing the Dow 300_+ points and NASDAQ over 115 points, but, the rally started to give way to profit-taking so mid-day there were a lot of stocks back to where they started. However, there is more positive than negative sentiment so another upswing was seen. Not a bad day for volatility-based system and I myself had a hedged position, took profit (on a covered call option becoming cheaper) and wrote another option with room for upside.

Today there is probably no earth-shaking report from China, so sunny skies are forecasted my friends, but tomorrow there is that CPI — inflation information — and hopefully it is not all that bad. But if it is bad, it’s probably good (more stimulus).

However, like what I keep repeating here last week’s volatility was all about concern on — valuation, valuation, valuation. If that gets too high again, unsupported by earnings (or telltale growth figures like retail sales, factory output, jobs) that’s another reason to sell.

If you want the specific, timely and actionable ideas to be profitable in wild swings in the investment environment (you know, the volatility). Workshop and webinars coming!
Low-Risk High-Reward Investing Workshop
Sept 19, 830am
2F Conference Room, Ortigas Building
Ortigas Ave, Pasig City Manila

Sign up at charmel@highheeledtraders.com

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