This is a trade review of my Costco COST call option trade. Why was I interested in COST? Because earnings was coming and I wanted to catch a price run up. Which way was COST trading? It was in a long upward trend. Was COST making an all-time high? Yes. When did you enter the trade and at what cost? I entered the trade on 3/5/2024. I bought 10 June 21, 2024 COST Calls for an average price of $7. Read more...

This is the start of my weekly market reviews for my trading journal. This is my digital watering hole, where I can celebrate wins and commiserate losses. It’s where I’ll work hard to figure out my new trading strategy and find opportunities in the market. I’m an old trader, definitely not a bold trader. What a week! I sold my stock holding in NVDA for a 20% profit and closed out all my AMD and COST calls. Read more...

I bought a call for COST, strike price 900 for June 21st expiration. The strategy behind buying these calls is this: earnings are due for Costco on Thursday and I expect good results. On top of that, COST has been one of my best long-term performers and I wanted to make some extra income from its strong trend. AMD closed down yesterday and NVDA managed to close up. Yesterday was a down day for the market but these two hanging tough in the face of the sell-off means the momentum is strong. Read more...

Now that I’m an active trader again I’m going to restart my semi-daily trading journal. I do this to keep myself sane spot where I make mistakes and learn to correct them. I’m long NVDA and it’s been a rocket to the moon. I got in around $750 and I expect it to hit $900 first before peaking out around $1,000. Traders love round numbers and I’m very wary of them because price action could fail around there. Read more...

Trade log star date March 1, 2024. Today I opened my first option trade in a long time. Yes, I own the covered call writing ETF’s QYLD and RYLD, but this was my first call option in two decades. Why did I do this? Simple, because “stonks” go up, at least in a strong bull market. There’s such a market euphoria right now that people are blindly throwing money at AMD, NVDA, and host of other shit related AI stocks that there are new all-time highs being made daily. Read more...

Is NVDA peaking? From today’s chart, it looks like it made a hammer on lower volume, so your guess is as good as any despite what CEO Jensen Haung thinks. Sure NVIDIA’s guidance is rosy and very positive, they believe that this trend will continue for the next 5 years at least! My question is, are you surprised by his sentiment? I mean everyone is upgrading the stock to crazy price targets because NVIDIA had a blowout quarter, of course, this will continue ad infinitum. Read more...

There are a few rules I follow religiously if I’m focusing on trading a short term horizon. I always sell half when I had an amazing run and let the other half run, and I always reduce risk right befor a stock’s earning call; even if the call is expected to be good. I ended up closing all my NVDA positions on Tuesday. In the case of NVDA’s earnings yesterday, all evidence was pointing to a great earnings call and they delievered. Read more...

I think the AI hype is catching up with momentum and trend traders. Everyone was (is) looking for the next best NVDA opportunity so they latched onto SMCI. Honesty, I have no idea what SMCI does but the market gossip/chatter was that it does “AI” and is into computer hardware. SMCI came across one of my “all time high after market close” scanners and I checked it out. It was doing pretty well before the “AI bros” got a hold of it and then it went price parabolic. Read more...

According to this article, the United Kingdom (UK) and Japan are technically in a recession. They’re estimating a second quarter of contraction in late 2023, which is considered a recession. Tik tok, the party is growing late and it’s almost time to go home and nurse a hangover. Remember when I wrote “The Recession is Canceled! Party On!” and “The Magnificent Seven Stocks & Their Pending Crash”? Things have gone to high for too long and we’re way overdue for a correction. Read more...

Here’s one from the “if it has AI inside, it’s going to the moon” file. SMCI hit an all time high yesterday after hitting successive all time highs. It’s going to open probably higher than its close at $880.55 yesterday, but is it still a buy? According to Yahoo Finance it might be: On the other hand, it’s possible that the company is still in the early stages of benefiting from powerful long-term demand tailwinds thanks to AI. Read more...