Navigating the Markets for Beginner Traders and Investors
HUGE WEEK INCOMING!
“If stock market experts were so expert, they’d be buying stock, not selling advice”
- Norman Ralph Augustine
Welcome to the Slow Money (Bi)Weekly newsletter
-formerly Market Adventures | Beginner’s Digest
Thoughts? 👇🏾
Here’s what’s coming up this week to pay attention to:
Tues -
10:00 AM US JOLTs Job Openings
Wed -
02:00 PM US Fed Interest Rate Decision
02:30 PM US Fed Press Conference
Thurs -
10:00 AM US ISM Manufacturing PMI
Fri -
08:30 AM US Non Farm Payrolls
08:30 AM US Unemployment Rate
What are your thoughts on the market right now?
Below you’ll find market information, education, and opinions. If you bought the stock market 101 course, this is where you put that information to work. Must read disclaimer at the end of this publication.
Fear & Greed
This gauge went from greed to extreme greed since my last publication.
What do you think happens next?
HUGE EARNINGS WEEK
A Technical Look
The Broader Market | S&P 500
A Summary of the charts below:
Fkk the charts this week. Though the weekly looks bullish, the daily looks bearish on the SPY. The dollar is at a resistance level and could fall this week.
But here’s the thing. No one gives a shtt about technicals right now because the Fed decision on Wednesday and subsequent conference that day will determine the movement for the market this week along with earnings.
Prices will stall in anticipation for the Fed, assuming there are no huge shocks in any mega cap earnings before then.
Plan? Take the opposite of any huge moves up or down, expecting price to balance until Wed. See money, take money. Quick and decisive. No holding. Chill till the Fed decision. If they’re bullish, the roof will crack wide open. If they’re bearish, I don’t foresee a huge drop but we should be ready to take profits both ways.
This is a 3 year Weekly chart of the S&P 500 index (SPY)
MACD - Strong green
RSI - RSI pushing overbought conditions
Price levels - purple line, previous all-time high. Red line, next price level support below if we fall down.
This is a 1 year Daily chart of the S&P 500 index (SPY)
MACD - Turning back up. Histos still weak.
RSI - lower highs, same negative divergence. Back into overbought territory.
*overbought doesn’t mean it has to come down. But it does mean down is the line of least resistance.
This is a 1 year Daily chart of the Dollar index ($DXY)
At strong 200 day MA resistance. Price bunch could indicate consolidation
MACD - Weakening histograms, though still trending up. Pushing above zero line
RSI - Above 50 line which is bullish
FIND A WAY TO
PUT YOUR MONEY TO WORK
Long-Term Holdings
This Month’s Long-term Stock Pick
Disney DIS 0.00%↑ Current Price: $95.36 (up 5.5% since 01/15 publication)
This is in line with philosophy that you should own what you use. My children love Disney, especially my daughter. As you can see, they are already owners of the stock. Adding to it below $90 again.
There are a bunch of reasons to like Disney stock. The fact that they started paying dividends again is HUGE. Right now the stock is where it was in 2015, almost a decade ago. Could it plummet further? Possibly. Is it unlikely unless there is some massive event unrelated to the company.
BUSINESS SUMMARY (source: TdAmeritrade)
Disney is a diversified media company and makes money through several businesses, including cable networks, broadcasting networks, theme parks & hotels, filmed entertainment, and consumer products. The company has also added a direct-to-consumer business to its portfolio recently.
Its cable networks include ESPN, the Disney Channel, ABC Family, and others. Disney's broadcasting arm, ABC Network, is one of the biggest broadcasting networks in the U.S., with a wide viewership.
Besides TV networks, Disney boasts several theme parks and resorts that attract millions of visitors every year. Furthermore, the company leverages its famous characters and brands to sell various merchandise. Its filmed entertainment unit produces and distributes movies under the Disney Studios brand.
Where My Money Is
My Current Swing Trade Positions: None
My Current Long-Term Holdings: MMM 0.00%↑ WBA 0.00%↑ PFE 0.00%↑ T 0.00%↑ KO 0.00%↑ O 0.00%↑ SBUX 0.00%↑ SQ 0.00%↑ AAPL 0.00%↑
My Son’s Long-Term Holdings: DIS 0.00%↑ RBLX 0.00%↑ O 0.00%↑ PFE 0.00%↑
My Daughter’s Long-Term Holdings: DIS 0.00%↑ SNAP 0.00%↑ AGNC 0.00%↑ PFE 0.00%↑
Book Club
Still crawling through it. Not really an attention holder. We will finish it though.
Disclaimer. Must Read.
Please read 👇
“This newsletter and all related Market Adventures content is not investing advice. Everything you are about to read is merely the opinion of the writer. Please seek the counsel of a financial advisor prior to making any investment decisions. Though the stock market does present many opportunities to make money, there are an infinite number of ways to lose all or more than your original investment. That being said. Don’t invest or trade in any security mentioned in this publication or its related content.”