I hope you are well and have had a green trading day! This morning, I was able to trade and get some nice moves on $TSLA. Over the past few days, where I missed most of the trading day, I was climbing one of the tallest mountains in Bolivia. Below you can see an image of me with my guide, finally getting to the peak of Huayna.
I am actually quite impressed with my body’s ability to climb such a difficult hike and I believe I am ready for Everest.
This morning, I traded $TSLA in the chatroom both via options and with buying shares. My option trade worked out very nicely. I saw that $TSLA was dropping, sold some calls, and garnered a 50% return in a matter of minutes! If you want to learn how to incorporate options into your day trading, make sure to watch the recap here. In it, I go into detail on how I picked the strike price, how I managed my risk, and why I covered. This is an important recap which I encourage everyone to watch.
Our interview with the legendary John Carter is now available as well. In it, John, Ardi, and I talk about the market in general, why John trades options versus equities, and where he thinks the market is going. This was a candid 1-hour interview covering the markets, psychology, and even life! Make sure to watch this conversation here.
Who are some of the other guests you would like us to interview? Let me know by simply replying to this email.
Back to the market, SPY appears to have lost its leg and the rally is coming to an end. One of the questions I often get asked is why the housing market has not collapsed yet (and especially in Canada). I believe the answer to this has something to do with the level of inventory and lack of supply of housing in both the US and Canada (and again, especially in Canada). The chart below shows that inventory levels are the lowest they have been in the last 5 years. With unemployment so low, no one is being forced to sell their house at a price they are not wanting to, and hence there is a lack of inventory.
Now, back to the market. What I get asked often by those around me is whether or not we are in the new bull market! Well, Nasdaq is officially in a “Technical Bull Market”, up 20% off the lows, but is it time to buy? I think that we have bottomed but many argue there is still more downside. One of the key things many hint at is the fact that 90% of the recent rally in the markets could be explained by 10 stocks only. The chart below shows how the top 20 stocks added $2 trillion in market cap in the first quarter, while the remaining 480 stocks only added $170 billion! The rally is therefore lacking the breadth needed to be sustained!
Tonight, we have Dr. Reid presenting a live webinar on TradeBook secrets! Dr. Reid will discuss the hidden advantages of using a TradeBook, and why it can give you more leverage over your trading than any other tool you might be working with. The webinar is FREE if you are an Elite member. Make sure to catch this tonight.
Lastly, If you are a subscriber to my newsletter and have been wanting to check out our education program but were on the fence, we are extending our free ($1 nominal fee to avoid bots) promotion where you can receive access to all of our basic education content for free. Make sure to check that out here.
To your success,
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Andrew Aziz (Ph.D.) is a Canadian trader, investor, proprietary fund manager, official Forbes business Council member, investor, and #1 best-selling author.