General Market Direction:
The stock market action this past week has made me rethink my bullish view of the markets for this month and possibly the rest of the year.
As I mentioned a couple of weeks, this is a very difficult market for me to play.
There are way too many bearish signals that are hard to ignore.
The main culprit is the US Treasuries upward march and approaching 5% is the single biggest downward pressure on the stock market.
The global geopolitical situation is also very unsettling.
All of the above has forced me to reevaluate my plans going forward and I am leaving my options open and am looking to move into cash this week… A lot will depend on how Monday plays out…
As I type this post, the market futures are up modestly (o.50%) and hope the markets open up to allow for a better exit…however, imho, the path of least resistance is down…
Let’s see how the cookie crumbles tomorrow…
Weekly Market Snapshot:
| Index | Previous Week’s Close | Current Week’s Close | Change | % Change |
| Dow | 33,670.58 | 33,127.28 | – 542.78 | – 1.61% |
| SPX | 4,327.78 | 4,224.16 | – 103.62 | – 2.39% |
| Nasdaq | 13,407.23 | 12,983.81 | – 423.49 | – 3.16% |
For the week, the Dow closed down 1.61% and the S&P down 2.39%. The tech-heavy Nasdaq was the biggest loser, down a whopping 3.16%.
Stock Performance of Options2Wealth Portfolio Companies:
| Company | Weekly Close | Previous Close | Change | Percentage |
| Intel Corporation | $34.92 | $35.97 | –1.05 | – 0.61% |
| Tetra Technologies | $6.18 | 6.30 | –0.12 | + 11.70% |
| Palantir Technologies | $16.11 | $17.36 | –1.25 | + 4.52% |
| Microvast Holdings | $1.34 | $1.63 | –0.29 | – 4.68% |
| Upstart Holdings | $24.69 | $27.13 | –2.44 | – 1.53% |
Now let’s check the performance of my O2W portfolio over the past week:
Options2Wealth Options Portfolio:
| Company | Options | Quantity | Purchase Price | Weekly Close * | Price Change | Current Value |
| INTC | Nov 17, 2023 $35 Calls | 15 | $2.75 (Average) | $1.76 | – 0.99 | $2,640.00 |
| INTC | Oct 27, 2023 $43 Calls | 10 | $0.85 | $0.02 | – 0.83 | $ 20.00 |
| TTI | Dec 15, 2023 $5 Calls | 20 | $1.10 | $1.15 | + $0.05 | $2,300.00 |
| MVST | Dec 15, 2023 $2.5 Calls | 10 | $0.50 | $0.00 | – 0.50 | $ 0.00 |
| PLTR | Nov 17, 2023 $16 Calls | 10 | $1.68 | $1.53 | – 0.15 | $1,530.00 |
| UPST | Dec 15, 2023 $27.50 Calls | 1 | $5.20 | $2.95 | – 2.25 | $ 295.00 |
| Available Cash | $ 118.78 | |||||
| Total Portfolio Value | $6,903.78 |
*Bid Price
Options2Wealth Portfolio Snapshot (Week ending Oct 6th, 2023):
|
Current Week |
Previous Week | Weekly Change | Weekly % Change | Total Current Value | YTD % Change |
Avai. Cash |
| $6,903.78 | $9,303.78 | – $2,400.00 | – 25.80% | $6,903.78 | –30.96% |
$ 118.78 |
This past week, my O2W portfolio took a very big hit, down 25.80! OUCH!
Time to lick my wounds and plan a comeback! 🙁
Weekly Musings:
A perennial bull, this past week’s action has turned me bearish and am seriously looking to move into cash.
Intel & Nvidia
This past week both INTC and NVDA took a hit, however, percentage wise, NVDA was down 3x more.
|
Stock |
Closing Price on October 13, 2023 | Price on Oct. 13, 2023 | Price Change | Percentage Change |
|
NVDA |
$413.87 | $454.61 | –$40.74 |
– 8.96% |
| INTC | $34.92 | $35.97 | –$1.05 |
– 2.92% |
Let’s see how the two stocks have fared since I opined 7 weeks ago that the market-cap multiple between the 2 stocks will shrink:
|
Stock |
Closing Price on Sept 1, 2023 | Price on Oct. 20, 2023 | Price Change | Percentage Change |
|
NVDA |
$485.09 | $413.87 | —$71.22 |
—14.68% |
| INTC | $36.61 | $34.92 | —1.69 |
—4.62% |
Over the past 7 weeks, on a percentage basis, NVDA’s stock price has come down 3x more than INTC’s stock price.
And therefore, NVDA’s market-cap has shrunk more than INTC and therefore its market cap multiple over INTC has also come down.
Wish you all a Safe Monday!
karim
DISCLAIMER: I am not a licensed broker or securities dealer. All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is not for the faint of heart as one’s portfolio can move up, or down 10%-50% or more during a single trading day, so trade with extreme caution. Past performance is no guarantee of future results.
Full Disclosure: I own options in the stocks of companies mentioned in my posts.