I started a new Educational Product in March and I’ve received great feedback on the content. Here is a note I sent to Members last night (Monday, May 11th). If you are looking for more content like this, real-time market analysis, and stock idea generation, please visit the following link to sign up: https://joefahmy.com/investor-education

Today’s Equity Only Put/Call Ratio was 0.50, the lowest reading since the S&P 500 peaked on February 19th. This is by no means an alarming number, but it could be an indication that people are jumping in a little too late. Please keep in mind that bullish readings don’t have the same significance as bearish readings, but if we get a few more of these this week and the NAAIM number ticks up, it would make sense to take some profits into this run.

Also, remember that the week of regular cycle options expiration tends to lean bullish. As I mentioned in this weekend’s video, I will likely be taking profits into the strength this week, especially because my worst drawdowns have occurred the week after OpEx. This is where I encourage people to know their timeframes and make their own decisions. Since I identified the follow through days in early April, many growth stocks have seen strong gains and it’s nice to hear that a large number of members took advantage of it (based on the emails I’ve received). From here, you have to decide if you want to reduce exposure or let some stocks run, especially if you have a lower entry point and a decent cushion.

Personally for clients, I am approximately 80% invested and I will be looking to reduce that to about 40% by the end of the week. Again, it is different managing money for clients vs. trading for yourself. I simply want to lock in some gains and I prefer to do so into strength. Also, after this week, the majority of S&P 500 companies will have reported earnings and the news cycle will shift away from fundamentals to interest rates, politics and all the other bullshit. I wouldn’t be surprised to see Covid cases increase over the next few weeks as the country continues to open up and the news will likely make a big deal out of this.

Finally, please keep in mind that I can be wrong and we can continue higher. I am ok with that because I’m up nicely on the year. I guess the best way to describe my current stance is short-term cautious over the next few weeks and longer-term bullish. I will discuss this further in Wednesday Night’s video.

Thank you,
Joe Fahmy

If you are interested in more detailed market analysis, please visit the link to my new Educational Product: https://joefahmy.com/investor-education

I can be reached at: jfahmy@zorcapital.com.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained on this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned on this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.