Week 10 & 11: The End is Near for you $SPY
This update is going over Week 10 & 11 of the $500 challenge. Past weeks, as always can be seen here .
It’s been a while since I’ve written. I mostly stopped because I’ve been burned out on writing these last couple of weeks.
Besides writing this weekly update, I’ve also been writing for the site that these archives live in. So it’s not just writing weekly updates, but writing helpful & resourceful content.
Okay, let’s get into the topics for this update:
- Latest Numbers and Trades
- Market Crash Coming Soon
Latest Numbers and Trades
- Number of Trades: 8
- Current Account Value: $1,014
- Highest Account Value: $1,045
Two weeks ago, the account value was at $267, from an all-time low $180ish. And I almost lost it all with a zero-day expiration on $SPY trade.
All, I can say is that this market is ridiculously hard, especially since my ego gets bruised when the market goes the opposite direction of where I wanted to go.
Nonetheless, on the weekend before the start of Week 10, I took some time to reflect on the decisions I made during my trades. And it always leads to the same thing, emotional trading, causing me to not get out of losing trades.
on Week 10, I made the decision to be robotic, and leave the emotions out & to only take confident trades.
On Week 10, I took 1 trade and netted a 36% return.
On Week 11, I took 7 trades, and skyrocketed the portfolio account value to $1,000 dollars!
Out of the 8 trades, I had 2 losing trades and 4 winning trades.
The last time the account saw $1,000 was back in Week 2, so I’m really happy about this progress after 8 weeks of pain and frusteration.
I’m also holding $AAPL puts for June, because I believe the market crash is coming soon. So at this point, I’m just relaxing and trading small amounts of money while I let the majority of the cash sit on those puts.
2023 Market Crash Coming Soon
On Dec 13, 2022 CPI report came in at 7.1% Second CPI report that came in lower than the last 2 previous reports.
This is a great indication, that inflation has peaked, and will continue to drop as interest rates continue to stay high. But something interesting happen that same day.
The SPY dropped right as market open.
And the days after it validated the rising wedge pattern on the daily timeframe.
On Dec 14, 2022, FOMC report came out with 50BPS and Powell spoke. Powell was extremely hawkish, and was clear about not easing on the high interest rates anytime soon.
They see consumer power is weak, and their main focus is to increase unemployment rate.
Historically, when unemployment rate has increased, the market has crashed. So I prepared myself by buying long puts with an expiration of June 16, 2023.
On Dec 15, it increased the premium value of those contracts by 30%, and it’s not stopping there. I believe sometime in January or February 2023, we will see halt on $SPY.
Good trading week, have a wonderful weekend.
If you want to reach out or follow my trades closer, I post everything on my Facebook Page.
