Aaron Invests (AI) wrote a post · Sep 21, 2024 05:48

Today's Macro Weekly news 📰 and a slight chance of strategy 🗝️🪖

Good Day Mooers!

It is that time again to discuss on the weekly reviews. This post will be on a slight delay due to me having a wedding event ongoing this week. 💒 Congrats to the married couple. 👰🤵

This week speaking of Married couple I would have a strategy which we could relate to that coming up!

Disclaimer ⚠ : What I post here is for educational purpose and it is not a recommendation to buy or sell. Please do your own Due Diligence about the companies you are going into. Please consult your tax advisor on tax related matters. All of my post are based on my own opinions and may only be in my perspective and may not have the full accurate picture. More details can be found in links which I may post.

Alright let's look at the polls!

Polls have shown that with the aggressive cut! Most of you said Tech.

Today's Macro Weekly news 📰 and a slight chance of strategy 🗝️🪖

In fact with such an aggressive 50 BP cut we seen last week, there is a massive rally in all sectors. Except for Retail, REITs,dividend based

. The phenomenon from the behaviour of sentiments believe that since there is a cut, we are starting to seek for Alpha ie growth in capital appreciation

🚀 and abandon safe stocks!

Looking at that perspective. True enough, Thursday growth and Friday profit take.

Looking at medium to Long term, I would be seeing a slowdown of appreciation by next week. More details in the macro.

See further details about my BP Opinions here

With such Aggressive cuts and as a Malaysian investor, we would see the good and the bad! 😏

MACRO Economics

Alright from the Macro economic news. My own perspective, are we seeing a Trump win based on sentiments in the market?

Details about what would happen if a certain party win prediction article here:

US Stocks Outperform Polls in Election Predictions, Perfect Since 1984

With such a high cut in BP and the high inflation

. Somehow the direction is leading towards Trump

. Despite the media polls said Harris is leading. Not that I am siding Trump but it looks like Trump index is performing better despite the index in Kamala Harris index is greater. Probably due to $Tesla (TSLA.US)$. Sentiments are showing side that Trump might win!

Trum Vs Harris

Trump

Kamala Harris

57%

43%

76 votes

Vote has ended

$Donald Trump (LIST22962.US)$

$Kamala Harris (LIST22990.US)$

INDEX

NASDAQ $Nasdaq Composite Index (.IXIC.US)$

Unsupported feature. Please use the mobile app.

Based on the technical, I would probably see Nasdaq is testing resistance at 18000 range. If all is well we may see it break to reach 18600 and up. If something happen we may see a pullback to 16700

S&P 500 $S&P 500 Index (.SPX.US)$

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S&P 500 indicates break to an all time high

. If that is the case most likely we may see Nasdaq breaking too. Currently still bullish and may go above 5733. However, circumstances may change and may pull back to 5300. Overall bullish!

Speaking of Marriage 💒 , I have a strategy that comes to mind about how we could use options as a strategy to generate cashflow.

Here is a back testing results testing a 1 week Covered Call and Cash Secured put!

Money printing baby!

1 week will definately be negative. However, if you can be consistent in issuing options, break even would be at week 2 to week 3

So while waiting for Malaysia to launch their options. I have already places up a strategy to generate cashflow in growth stocks! What i would do here is to issue a covered call and a cash secured put as a form of dividends to growth stock.

Covered Calls

A covered call is whereby you start selling calls at a premium with a set of strike price. That means you collect the cash first and hope that options expired. Once the options have expired. The premium is yours to keep! However if the market price goes above strike price. You have to sell your shares when the holder exercise the options.

but that is ok. The reason why I see this as a win-win is because you have secured your profits

while collected the premium.

More details here:

Covered Calls: How They Work and How to Use Them in Investing

Cash Secured Put

Cash secured put on the other hand is where you have enough cash

. You collateralised the cash while waiting for the shares to not drop to your price. That means you are collecting premium while waiting to buy the shares at a lower price

. This strategy you are obligated to buy the shares per contract and when it reaches the strike price, you wait for the person to sell it to you. If you don't you still keep premiums

I find it interesting that there are other investor that did a super combo. @doctorpot1 article states you can earn extra money with cash secured put.

Earning extra money just gotten easier for options trader

More information about cash secured put. Link below

How to Sell Put Options to Benefit in Any Market

Alright I hope with this basic tutorial on how to use options as a cash flow inspires you. 🥂

May your trades be ever in your favour.