2021-03-28 Sunday

WEEKLY MARKET OVERVIEW

For the most part of the week, the S&P500 (SPY) has been trading lower, still pulling back to the trend line that has been holding as support since the US presidential elections. On Thursday, a gap down at the opening followed by a sharp price decline, rather than triggering a wave of panic selling, led to a strong bounce before the close. 

SPY (daily chart)

On Friday, after a gap up at the open breaking out over the descending trend line (on the 15min timeframe chart) and a consolidation during the central part of the session, prices took off in the last hour of the trading week, to finally explode up in the very last minutes.

SPY (15min chart)

Sector rotation is still favoring the old economy value stocks, with growth innovation stocks and small caps keep struggling.

Weekly performance (Week 12/2021)
– SPY (S&P500) +1.67%
 QQQ (Nasdaq100) +0.91%
 DIA (Dow Jones Industrial) +1.41%
 IWM (Small Caps) -2.79%

Volatility (VIX) closed the week under the 20 level for the first time since the Covid crash.

VIX

WEEKLY TRADING JOURNAL

Not much is changing in my trading journal. Currently, I have a few cash-secured puts open on ARKK and QQQ that I keep rolling out in time for new credit while waiting for prices to recover. The stocks I own are still underwater and I was able to sell covered calls only on three of them, all expiring worthless for full profit at the end of the week.

The GRWG 03/26 CC $60 generated a 183% AROI over 7 days.

GRWG

The MTCH 03/26 CC $160 generated a 51% AROI over 4 days.

MTCH

The NNOX 03/26 CC $60 generated an 84% AROI over 4 days.

NNOX

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In case you have any questions, just drop me an email to info@thewheelstrategy.com

Take care and trade wisely

Gianmarco