Calmest Market Since COVID

THE WEEK

Friday we broke through an old 52-week high on the S&P 500 with more money moving in.   Additional monies did not enter the NASDAQ and it was not able to break through to a higher high.

The PMI reported on Friday and the FOMC chairman, Jerome Powell, spoke shortly thereafter.  Neither event rock the current trend as we all pretty much knew what was coming and what was going to be said beforehand.  No surprises or bad news.

LOOKING AHEAD

 I believe the Market has entered a time of relative quiet for at least the next six weeks.  I feel the trading herd is calm and really wants this smoother Market.  We are all pretty weary of being battered by the state of the economy and the turbulent world news.  Here’s a chart of the VIX, an inverse chart showing the treading herds emotional trading feeling.  Fear has exited and they are feeling pretty confident right now.  We haven’t seen the VIX this low since pre-COVID days.

HOW AM I DOING?

I had a bad week and it was my own fault.  I was distracted trying to solve a major problem in another company I own.  Trading takes focus and planning and I was doing neither.  I have just spent a couple of hours this morning reviewing all my trading decisions (or lack of decisions) and have a new mindset going into next week.  Money Press trades (Credit Put Calendar Spreads) are one on my favorite setups.   I did see one glaring error mistake I was making on my Money Press setups.  That will be the subject of Thursday’s webinar.

Thursday’s DEEP DIVE

Choosing the Best Money Press Set-up for Each Market’s Price/Action