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Showing posts from February, 2022

Enhanced DRIP Strategy & Covered Call, Swing & Hedge in a High Volatility Market

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  I 、 DRIP Strategy & Sell Covered Call with Lower Expectation The above are the screen shots at late night of Feb 21 st and a little over one and half hours before the market close on Feb 22 nd (San Francisco time), mainly regarding planning ahead and buying Intel during the panic on Feb 22 nd :【 Intel is currently less than $44 , and it is highly likely a good value investment in the medium and long-term. Meanwhile, it is a good hedge for short positions in over hyped growth stocks and over value Nifty Fifty style stocks 】 , and added 【 From the mid-term perspective, the market likely has not reached the rock solid bottom yet. Last year and this year(expected), Intel's revenue growths are both negative, not optimistic at all. However, during the next 5 years, its overall revenue growth will likely still reach the average annual rate of 7% (significant capex investments). For sure, there are some uncertainties, such as, the effective progress of its IDM 2.0 Strategy , and i...

Still quite some complacency around, time to sell the rally, hedge & swing trading again

  On Feb 1st during the market open hours, I mentioned that “the strong resistance of S&P 500 is in the [4550 4600] range”, which means, there is a high probability that the market will rebound from the panic selling to “build the right shoulder to complete the head and shoulders structure, but the right shoulder will very likely be lower than the left shoulder”. Last Wednesday (Feb 2nd), S&P 500 rallied and fluctuated in the range of (4544.32 4595.31), and was closed at 4589.38. It was indeed a good opportunity to short the rally then and swing trading, especially on the ones with strong speculation in natural but poor or worsening fundamentals yet still very high valuations, basically the ones good at telling fancy stories and painting big cakes which do not deserve still way too high valuations.   A paragraph on Sunday mentioned that “six high rank Fed officials came out last week, with most of them intended to appease the market”, that is, the Fed will have to ...