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Morning Brief: Fake Bounce or True Rally?

The market continues to show signs of support as tech, with help from AAPL, bounces back hard. Tesla was upgraded yet again yesterday, as it steam rolled back to 938 yesterday. AAPL is pushing back to its all time highs, settling just below ~175. The question still remains if this is a dip buying bounce followed by a sell off shortly or is it a true rally into the next Fed decision?


It is still hard to say, as key resistance and support levels are yet to be truly tested and the best way to trade this market is to remain nimble until the technicals line up. I am sure a lot of investors that closed out in the dip, are feeling the snake bite affect. And those that didn't hedge, feel a bit lucky. However, the real way to have capitalized in this market, was to hedge or short , and gain value on both sides of the up and down swings. That is where option trading really shows its usefulness and is a great strategy whether you are hedging a full portfolio or just trading for swings.


We have headed into February 1st, and with January closing, we could see the true direction the market actually wants to take.


ECONOMIC RELEASES:


JOLTS, ISM AND PMI all come in today and we could see some true indications where the market is heading when these reports come out and the market swings.



TRADES:


#MRNA was the first to get FDA approval yesterday, and the stock ripped on it. I sold some puts yesterday into the upswing and we could see larger swings today.


#NVDA continues to pop on analyst upgrades, and I continue to own the underlying and pushing back into covered calls.


#TSLA is still pushing strong, rising up over 8% yesterday and closing stronger Friday. I am still long calls here and riding the wave until indications in the market peak out and I need to close the position.


All in all, just following the market on options trading this week and hopping in and out.



In Asia, Japan +0.3%. Hong Kong closed. China closed. India +1.5%.

In Europe, at midday, London +1%. Paris +1%. Frankfurt +1.1%.

Futures at 6:20, Dow -0.2%. S&P -0.3%. Nasdaq -0.2%. Crude -0.2% $87.95. Gold +0.6% at $1808.10. Bitcoin +2.7% to $38,268.

Ten-year Treasury Yield -2 bps to 1.76%


 




INSTAGRAM: day trading_traveler

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