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28 Jan

Posted at 14:04h in Andrew's Newsletter

Dear Traders, The market certainly sold off at the Open today but it has reversed significantly by the time I am writing this newsletter at 11am ET. Market volatility has been so high lately that it is challenging to write some commentary with any sort of confidence during market hours! Brian and I each had nice reversals on TSLA and booked substantial profits. You can watch our recap here. The market has definitely been oversold in the...

28 Jan

Posted at 12:17h in Andrew's Newsletter

Dear Traders, We had some amazing trades today in the chatroom including a short on TSLA and a reversal on AMD. Please watch the recap that Brian and I posted here. TSLA has reported some very interesting earnings, and although they had record profits, the overall fear of supply chain issues has taken them down over 7% as I write these words. Yesterday, Federal Reserve Chair Jerome Powell announced his support for an interest rate hike in...

25 Jan

Posted at 15:46h in Andrew's Newsletter

Dear Traders, Today, the market gapped down again and traded lower. Yesterday, it went down as low as 5% for QQQ, while reversing and closing almost green for all indexes. What a volatile time we are trading in! Brian and I traded a nice reversal around 10:15am ET on QQQ and IWM. You can watch our recap here. For Tuesday Strategy, Peter is leading a discussion on the subject of how best to start your trading journey,...

24 Jan

Posted at 17:16h in Day Trading Success

Dear Traders, I hope everyone began the day – and the week – nice in this volatile market! Brian and I were able to make some great reversals on Indexes. Brian took TNA for the reversal of IWM and I took SPXL and TQQQ for the reversal of SPY and QQQ. For the latter, an excellent reversal happened at around 10:16am ET. You can watch our recap here. We have also recorded another episode of AfterHours with...

20 Jan

Posted at 17:31h in Andrew's Newsletter

Dear Traders, The global bond market sell off paused yesterday as it seems not all central banks are keen to increase interest rates. The Bank of Japan Governor stated that “Raising rates is unthinkable.” Similarly, the European Central Bank President said they have “…every reason not to react as quickly…” The market quite liked this news and bounced back, with all sectors gaining over 1% as of the time of writing this newsletter. In the chatroom, many...

19 Jan

Posted at 15:36h in Andrew's Newsletter

Dear Traders, Interest rates are rising, and that impacts the profit margins of banks. The lower liquidity means money is not as cheap as it used to be, and investors try to avoid high value companies (which often are focused on technology and represented in QQQ). As rates go up, banks’ profit margins go down, because they are borrowing money themselves and lending it to their borrowers, making money from the interest rate spread. Now, in...

18 Jan

Posted at 12:54h in Andrew's Newsletter

Dear Traders, I hope everyone had a great long weekend! We are launching into the earnings season with some big volatility this week. The market sold off heavily as interest rates and the yield on 10-year Treasury bonds (the benchmark for the risk-free rate) rose to around 1.82%. The bears are having fun while the bulls are experiencing weakness. I am already anticipating how this week will end. Some market internals are signaling a reversal, but...

13 Jan

Posted at 15:09h in Andrew's Newsletter

Dear Traders, I was recently asked by a website to comment on the issue of when it is best to trade stocks and when it is best to trade index funds. In short, my response was that for day traders, it is better to focus on index funds and leveraged ETFs when the overall market is quite volatile, like what we are seeing now or what unfolded during the March 2020 pandemic sell off. When the...

11 Jan

Posted at 15:04h in Andrew's Newsletter

Today started very slow, but in the end it turned out to be a very volatile day. As I write this, the market has bounced back from its early morning losses and Brian and I (and hopefully you) were able to make some nice trades. Thanks to Jarad, I traded LCID and NVDA while Brian monetized on BABA and JD. As Brian famously said in the chatroom this morning, money leaves the US and goes...

10 Jan

Posted at 16:45h in Day Trading Success

Dear Traders, What a crazy day to start the week! Ardi, Brian, and I discussed in our weekend AfterHours with Traders that increasing interest rates this year will both strengthen the USD and put selling pressure on high-risk assets such as crypto and overvalued technology stocks (that are mostly represented in the QQQ index). Ardi is already long on energy and financials, and he has also booked some gains on them. Today, as the market opened, we...