NPP's This Week In Trading 7.14.19

Weekly Letter: 7.14.19

Market Environment: Volatile

Names Added This Week: ROKU (short) SPXU VXX

New Names Watching This Week: GOOGL (short)

It was another all-time weekly closing high for both NPP and the SPX. Big wins in AMAT CRM DBX SPOT and SNAP propelled our P&L to a +0.55% on the week. Our only loss was a tiny one in our TSLA put play.

We continued our selling that started last week as the SPX hit our target zone. The SPX could still overshoot to the 3100 area, but we feel the risk/reward is no longer good for long plays. We're now playing for an SPX .50/.618 retrace from the May lows to the highs of this current wave. We'll have to wait for this wave to top to know where those levels are, but we are beginning to position and prepare for it. You'll notice we have a few short plays already on the board with ROKU and SPXU as well as volatility play in VXX. We're also stalking GOOGL for a potential short and will add to our SPXU position on a drop below SPX 2963. We will not be looking for any new long plays until this market has at the very least, a .236 retrace.

Again, we've kept our Market Environment as "Volatile" for this week. But again, this is only because we believe we are nearing the top of this wave. After the retrace and subsequent rally that breaks downtrend lines, we will change the Market Environment to "Trending" and build long positions that we will hold for longer to reach higher targets.

Please email me any questions you have. Looking forward to another money-making week.

Onto week 29!

This Week's P&L:

NPP: +0.55%
SPX: +0.93%

This Month's P&L:

NPP: +1.83%
SPX: +2.79%

This Year's P&L:

NPP: +7.11%
SPX: +20.22%

NPP vs SPX Lifetime: (blue line=NPP)

Screen Shot 2019-07-13 at 6.27.53 AM.png

Current Positions:

Long-term: CRSP (calls) EA GE GILD GLD QD (calls)  SNAP (calls)

Swings: QD ROKU (short) VXX

Quickies: SPXU (short puts)

Charles Chao