Weekly Raid #65 - The Monday Morning (QQ)Quarterback
It’s Monday, which means it's time for another trading week.
With a few pieces of news, earnings, and all the geopolitical risk. We are in for a hell of a week I am sure.
News of the day
Today is one of the lighter news days of the week.
The only really well-known release is the NY State Manufacturing Index, but I am not sure how much that will move the markets.
More important in my opinion is earnings that are starting up today. Schwab is the big one, but the rest of this week is packed with some big names and potential market movers like TSLA, BAC, and TSMC
Earnings will most likely steal the news show this week unless something insane breaks on the wires.
Again this week we should probably be looking towards the Middle East for potential event risk to our markets. If we add to that the ongoing conflict in Ukraine, The US’s own open borders, and Our own admission that the US “Should prepare for things domestically”, I think a real global war could, unfortunately, be on the Horizon.
To steal a quote from one of my favorite shows, MASH: “Thanks to the failure of our various elected leaders from stopping a cold war from going hot”. I can only hope that anyone in a position of power pulls their head out of their butt because while conflict is usually fantastic trading it will have serious consequences.
So now that you have your daily dose of paranoia from me, how do you prepare for it?
There are only 3 ways I know of to prepare for event risk:
Keep your size small so you can always add
Buy Protection through puts or volatility
Personally, I am trading half size until I get a better feel for how everything is going to shake out while simultaneously buying some longer dated puts in SPY and IWM. I am also starting to add some long volatility plays to my portfolio as a Hedge. Things like VIX options and VVIX are what I am looking at. These are not trade recommendations, simply what I am thinking will work to help soften an economic blow.
In addition, I am always adding Silver and Gold bullion to my collection and a few other things that don’t need to be mentioned on here.
There is a fairly long watchlist this morning, so I will be posting the first 3 with charts, and just list out the rest. This can be viewed as more of a weekly watchlist than a daily one. Also going forward this will start to transition into a “Charts of the Day” where futures and other things may get posted as well as a watchlist.
First up we have the obvious: TSLA. They have earnings on Wednesday and I am looking for some solid action leading up to and after earnings come out.
Next up is ET, and I need to thank my buddy for putting this back on my Radar. This is a great stock because its affordable to most people and has a solid dividend with liquid options.
Finally on the charting front I am keeping an eye on the Nasdaq in the from of the QQQ ETF. With earnings due out for the next few weeks, the ETF’s make it a bit easier to manage company specific risks.
In addition to these I am also watching the following:
Trade well and Good Luck
As always this is all for educational purposes only. You are solely responsible for your trades as I am for mine. Nothing in here should be construed as financial advice, but only educational content about the markets and my particular trading style.