2021-04-03 Saturday

WEEKLY MARKET OVERVIEW

After a couple of difficult weeks, bulls are finally back in control pushing the S&P500 (SPY) to all-time highs and for the first time over the 400 threshold. After the breakout on Friday, with the index now quite extended on the upside and in overbought territory, some sort of pullback or later consolidation would be a natural evolution over the next week.

SPY

After weeks of underperformance, mega tech stocks (QQQ) have been leading the way up. The strong gap up on Friday has broken the descending trend line, possibly signaling the resume of the long term uptrend.

QQQ

Weekly performance (Week 13/2021)
– SPY (S&P500) +1.17%
 QQQ (Nasdaq100) +2.71%
 DIA (Dow Jones Industrial) +0.25%
 IWM (Small Caps) +1.42%

Volatility (VIX) keeps falling under the 20 level and now trading in the 17 range.

VIX

WEEKLY TRADING JOURNAL

While most of the shares I own have been benefiting from last week’s market recovery, I was able to close a couple of defensive covered calls for nice profits.

On Wednesday I bought back to close the AAPL 04/16 CC $130 for a $0.53 debit, keeping 60% of the premium for a 25% AROI in 9 days.

AAPL

The NNOX 04/01 CC $50 expired worthless at the close on Thursday generating a 134% AROI over 3 days.

NNOX

On Thursday, I also closed one of my cash-secured puts on ARKK that finally is starting to recover from the recent sharp pullback. I bought back to close the ARKK 04/01 CSP $118 for a $0.05 debit, keeping 97% of the premium for a 64% AROI in 9 days.

ARKK

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Take care and trade wisely

Gianmarco