NPP's This Week In Trading 7.21.19

Weekly Letter: 7.21.19

Market Environment: Volatile

Names Added This Week: SPXU

New Names Watching This Week: ADNT BA MU NFLX TWTR X

The SPX was down -1.48% this week, but thanks to some clever buying of SPXU and VXX calls, we were only down -.07%, essentially flat on the week. With Iran tensions escalating and uncertainty over what the Fed will do at then of the month, our SPXU and VXX could pay us very nicely when all is said and done

As you know, we have reduced our long positions significantly as we rallied to SPX 3018 in anticipation of a pullback. And now it looks like we are finally getting the pullback. We have four targets on the SPX to watch for potential reversals—2950, 2910, 2875 and 2840. We'll wait to see which target bulls step in at, sell our SPXU and VXX for profit, and start building long positions for what we think will eventually turn into a 3 of 3 wave that will take us to 3300. The longs that we are watching right now are ADNT BA MU NFLX TWTR and X. All the charts with entry details are at the bottom of this letter.

We've kept our Market Environment as "Volatile" for this week as we begin the anticipated pullback. After the retrace and subsequent rally that breaks downtrend lines, we will change the Market Environment to "Trending" and aggressively add long positions that we will hold for longer to reach higher targets.

Please email me any questions you have.

Onto week 30!

This Week's P&L:

NPP: -0.07%
SPX: -1.48%

This Month's P&L:

NPP: +1.76%
SPX: +1.31%

This Year's P&L:

NPP: +7.04%
SPX: +18.74%

NPP vs SPX Lifetime: (blue line=NPP)

Screen Shot 2019-07-21 at 9.16.39 AM.png

Current Positions:

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

Swings: QD VXX

Quickies: SPXU

Charles Chao