Room to Run

The Nasdaq is now setting new highs — looking at the chart of its biggest constituents (AAPL, AAPL, MSFT), we can see that they have all broken through resistance levels at their own highs. I think this is very bullish for them. Even though I’ve missed a lot of the run-up I think there is still room to run.

I think a large part of the current stock market’s moves can be explained by the Federal Reserve expanding its balance sheet by $3 trillion in 3 months. It seems so obvious in hindsight. Now with Jerome Powell confirming today that the music is still playing, I feel even stronger about the short-term upside in equities, given the murky fundamental picture.

I added some QQQ options yesterday, and I added to them today after JP took some risk off the table. This is something I hope to improve on as a trader: adding to winners. Especially something that I have taken a view on.

Its very important to have a reason for your investments; your own analysis. Trading on a whim, or someone else’s tip is sure to get you in trouble.

Another view I took, and acted upon, was adding to my gold position. To me it looked like gold miners were bouncing off of the bottom of their trading range and would head back towards their recent highs, so I added more RING today prior to the Fed’s meeting.