Spot the Profitable Move!

THE WEEK

The big news this past week was the FOMC decision to hold interest at the current level.  Traders bought in  during the announcement and press conference and then immediately sold off bringing the Markets down to the price level before the release.  On Friday there was also a positive reaction to the jobs report.

Friday’s trading was brisk and ended the week on a three week high.  It was a difficult week to trade because of the reports which caused the Market to swing wildly with high implied volatility.

LOOKING AHEAD

On Thursday’s weekly Investing Buddies webinar, I went out on a limb and made some predictions the rest of the year.  I put a lot of thought into them.  High interest rates are hurting many industries.  I realize the Feds are walking a tightrope balancing between bringing down inflation and the state of economic growth and business profitability.  It is like a three dimension puzzle with many moving parts.  In brief, my predictions are: 

1. I think the Feds will hold the interest rate where it is for now.
2. I think they will lower interest rates at the November meeting.
3. I believed the stock Market will gradually climb during the late summer and fall leading to the elections.

This may be wishful thinking because I am ready for a calm gradually up Market after being battered around for the past four years.  I want to get some stable traction in trades and not have to constantly be adjusting.  No matter what comes to be, it will be fun to watch. Stay tuned, everybody and see if my predictions are right on!

HOW AM I DOING?

I didn’t trade much in the chaos of reports and reactions last week.  What I did trade was profitable.  The gains were small as I had to close some trades early because volatility and the wild price swings.

Which brings me to the subject of this week’s DEEP DIVE on Thursday’s webinar.

Volatility and Implied Volatility

And how they can help and hurt your trades