NPP's This Week In Trading 6.9.19

Weekly Letter:

Market Environment: Volatile

An excellent week for NPP. One of our best of the year. We are now back to the year high we achieved in March. And thanks to our new trading style, we don't plan on looking back.

As we mentioned in our report last week, our indicators suggested a bounce was imminent. Well, we got it and then some. We were already well positioned, but we got even longer with names such as AMD CRM NFLX SNAP and TSLA giving us monster gains. Now, we're nearing short term extremes on the other end which makes a pullback imminent. That's how fast this market moves these days. And it doesn't seem this volatility will be going away any time soon. We will continue trading with our Volatility Rules—buying on extreme sentiment lows, selling on the bounces. It won't be until we see signs volatility is waning and a larger trend is in place before we begin Trend Trading Rules.

The market will likely gap up Monday given the Mexico news on Friday. How far does it run after, who knows? There is a lot of bearish sentiment still and many are caught offsides, which could fuel this V-bottom rally and we head higher before we pullback. In case that happens, we do have a few names that we will play for quick trades. If you're interested, check out the Watch List section of our site. But we won't go in big like we did this week until we get another pullback and extreme sentiment low reading. That's the plan.

As an aside, I read this from Lipper this morning: In the last 6 weeks, investors have pulled 58 billion from equity mutual funds and ETF's, the most in any 6-week period in 17 years.

Crazy, considering we are near all-time highs. What does this mean? Is this bullish because investors will be forced to pour money back in if the V-bottom continues. Or is this bearish, because big money sees the writing on the wall? I guess we'll know soon, but a very interesting development nonetheless.

Onto week 24!

This Week's P&L:

NPP: +2.05%
SPX: +4.41%

This Month's P&L:

NPP: +2.05%
SPX: +4.41%

This Year's P&L:

NPP: +6.03%
SPX: +14.62%

NPP vs SPX Lifetime:

Screen Shot 2019-06-08 at 8.13.22 AM.png

Current Positions:

Long-term: ACB (calls) ARKG CRSP (calls) EEM GE GLD NIO NIO (calls) QD (calls)  SGMS SGMS (calls) SIG (calls) SNAP (calls) VIPS Z (calls)

Short-term Full: SPXU

Short-term Runners: SPXL

Stopped out: none

Current Watchlist:

AAPL ABBV AMAT AMD AMZN BABA BAC BIDU BOX C CAG CGC CPRI CRM DHI DIS EA DWDP EDU FB FSLR GILD GLUU GOOGL HUYA IBKR IQ JD JPM LEN LEVI LYFT MRVL MSFT MU NFLX NKE NVDA PRU QCOM ROKU SE SMH SPOT STNE TEUM TEVA TJX TWTR TWLO UAA UBER WDC WMT WYNN X XLNX YELP Z

Charles Chao