Apologies for the absence here in the blog, some wifi issues and then I had to go on a little trip as well with some friends to the highlands and feasted on strawberries.
Since it was nearing the end of quarter, I actually had very passive positions with Call Bear spread options on FB expecting that the stocks were going down given the run up we had the last weeks, and the price moves were starting to just consolidate, there were some Fed officials too saying it’s time we move up rates, but all those talk of rate rise were silenced with US Fed Chair ( I might start call her Mama Yellen ) giving a dovish statement the other day that low rates are especially warranted. It’s not the best situation because the “global weakness” is not a thing to be happy about, but I love that it gives clarity … for a few weeks at least! hehehe
So temptations are plenty. Risk is back on again since the central bankers moved to stimulate economies as I’ve said they are wont to do. We saw a lot of technology stocks shoot up, FB is nearing its all-time high yesterday at 16.99 before it dropped off in what seems to be profit-taking. Apple has also recovered nicely as well as AMZN roaring with the consumer discretionary sector. All those sectors that benefit from low interest rates are tempting for sure. I thought the “sentiment” is bubbling over too much, but hey, can’t do anything but ride sentiment.
But here I also have to give a reason for pause. It’s end of the quarter and a new one rolling in, we might see more selling due to profit-taking. China might also roll in with economic reports with some bad numbers again (shhhhhh not too loud) and a selloff can just happen again. Remembering those early January reports still gives me the creeps! And while there has been some small policy changes and perhaps pronouncements about supporting growth, we haven’t really seen anything BIG to come out from them. The old strategies are still in play. Note that there hasn’t been a rate cut from China, which could work both ways — sending the currency down OR supporting the risk sentiment. Whatever you believe the market will take, make sure your positions are well within your risk.
I will also be having my workshops again April 23rd and May 14th.
With the market resuming its uptrend in the last weeks, we have to know when to take profits
and manage fear and greed. Our Low-Risk High-Reward Investing Workshop will train you to
make effective decisions based on proven systems, understand the market and manage risks.
More about the workshop details and content in this link:
Register at charmel@highheeledtraders.com
http://www.bloomberg.com/news/articles/2016-03-30/asian-stock-futures-rise-amid-dovish-fed-while-oil-resumes-drop
