Trading Week of Aug 29 – Sept 02  - Brown Surfing

Trading Week of Aug 29 – Sept 02 

Posted on: August 30th, 2022
By: Efrain Lemus

News

Dow Jones Futures Rebound As Stock Market Hits Critical Support Level

It says the DOW Jones rebounded in an effort to make up for losses. I’m not sure I understand this phrase, did a lot of investors suddenly buy into it to bring the price up?

TSLA, AAPL, MSFT rose ahead of the rally.

According to this article, here are stocks to watch with the current volatility in the market: ANET, COST, GFS, ULTA, CVX, and MCD.

Walmart-owned Sam’s Club raises annual membership fee for the first time in nine years

This is happening due to inflation.

Walmart grew during the pandemic and enjoyed low fuel costs but is now being affected by it.

It’s a record high.

Costco and Sam’s Club saw in increase in clients with people seeking bulk discounts.

Costco is not looking to raise membership rates and has seen an increase in memberships.

Snap shares pop on plans to cut 20% of staff as part of major restructuring

It will cut 20% of its 6,000 employees and drop several projects.

They are doing this restructuring to deal with its financial struggles so this is good news.

Their three main priorities are: augmented reality, community and revenue growth.

It missed earnings by 25% last report and didn’t give guidance on the next one.

TikTok has become a real threat to Snap and other competitors.

They paused work on a drone they were going to create to take photos from multiple angles that was going to cost $230, going to launch in April.

Dow Jones Falls Amid Key Economic Data; AMD, Nvidia Slide On Government Restrictions

The drop was caused because of economic data that came out. Chip and oil stocks are leading the declines at the start of September.

AAPL and MSFT fell on market open today on Thursday.

ANET, COST, GFS, and ULTA are among the top stocks to buy according to the article.

SPY is down 0.65% among market open.

Jobless claims fell to 232,000 when they had expected 246,000.

A Bet on Bed Bath & Beyond Stock With Less Risk

One good move is to invest in TSLX, the company helping finance BBBY.

BBBY shares have plunged by 21.3% after they said they’ll cut 20% of their workforce.

J.P. Morgan deemed BBBY as an insufficient lifeline.

Investing in business development companies like TSLX are a way that companies can get exposed to private credit markets.

Dow Falls to Start September, Nvidia Slides—and What Else Is Happening in the Stock Market Today

This is saying that new COVID-19 China lockdowns are affecting the market.

The largest city since Shanghai has been locked down.

Any company who’s profits derive in any way from China will see lower results when there’s a new virus outbreak.

SBUX, WYNN, LVS, NKE, and EL

Questions

Day trading

  • For certain stocks, when they have more of an upside than a downside, I have a feeling they’ll keep going up, do you buy these stocks?
    • In that same line, do you short them once you have a feeling they’ll come back down?
  • For the top reversal, if you have a feeling it’ll run up, do you buy the stock instead of shorting it?
  • A stock like NEOG seems very volatile, moving up and down (about $1) constantly throughout the day. Is it a good strategy to trade a stock like this several times? For example, buying when it goes up, closing position, selling when it’s coming down, closing position, buying when it goes back up and repeating that process throughout the trading day?
  • Profit wise, with trades less than 1 year being taxed higher, plus the normal tax amount for any income, would you say it’s safe to say that I’m profitting about 3/4 of what I make? So in one day of day trading I make $100, about $25 will be profit?
  • I’ve noticed that after about 1pm (EST) there’s not much action anymore? Is that normal?
  • If there are no stocks on the scanner, what do you do?
  • If a stock shows on the scanner after trading hours do you save them for the next day?

Options

  • For example on Friday, with such a big event happening, could you do something like an earnings play? For example, SPY was high and it went down by $10 so you could sold calls at the beginning of the day and buy them back later to make some profit?
  • This one is mixed with day trading as well, but sometimes a call spread will reach like a quarter, third or half profits in a short amount of time. Is it good to close that one and enter another position with either the same expiration date or one further out?
  • Can I roll a bull spread?

General stock market news

  • With now there being strong rate hikes for longer, how will that weigh into the stock market?

Have any questions or comments? Write them below!


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