A little background on myself as this is my VERY FIRST EVER POST.
Like most of us on here, I have tremendous goals in life and don't want to settle for "being average". I grew up below the middle class by a single mother of four kids that worked two full time jobs to provide for her kids and I couldn't afford university. I have worked in the oil patch in Alberta Canada along with a few well paying labor intensive jobs to earn more money to find the more I earned, the more taxes I paid and expenses I seemed to have incurred. Life felt like a trap and this was brought forth by my favorite author and someone I'd consider a mentor now; Robert Kiyosaki, approximately two years ago.
I've taken it upon myself to educate about many subjects starting with banks and our monetary system over the past two years. (I wont get too in depth with this subject as it can be debated and go on, and on, and on) I was pleased to learn the Federal Reserve has nothing to do with the Federal Government and there is no reserves (who knew right!?)… Banks have fascinated myself as they hold the most of what I want. I've witnessed first hand ITS ALWAYS ABOUT THE MONEY many times over the past year, most recently with my wife and mother of our two kids - 11 months and three years old, battling breast cancer at the age of 32 years (about to go for her second round of chemotherapy) when she had to try a drug that makes her feel like crap and fail first because the other one that's substantially more affective with less side affects - costs more money.
Much like most wealthy people (I don't consider myself wealthy. Yet). I want people to create an empire, and success stories get me excited! So, I've decided this is my first step in sharing something with the rest of you that have influenced many trading ideas and decisions over the past two years. I would appreciate any feedback or opinions on this because as I've learned; NEVER let your opinion put the blinders on or emotions get in the way of a trade. (this was my cost of education haha).
THANK YOU TO EVERYONE THAT POSTS AND SHARES THEIR IDEAS - I have and will continue to learn from all of you at one point or another!
NOW to the "MEAT AND POTATOS"
The banks tops pre-Covid Crash - I'm calling this a crash because of how short lived losses were - December 23, 2019. 36 Trading days later we saw the S&P begin to take a bath. JPM, WFC, & BAC (the 3 largest banks in America) had a very visible divergence prior to this fall out creating lower highs as the S&P was making new highs which sounded an alarm in my head however I kept it to myself being newer to the markets and sold most positions sitting on what I had ready to buy the bottom. I didn't quite buy the bottom but definitely caught my sails in the winds on the way back up but that's besides the point.
Here we are 360 trading days later banks have clearly put in new highs June 1st
Since there is a clear divergence AGAIN in place between the big 3 and the S&P 500
JPM Earnings July 14th (tomorrow) - DOWN 1.40% TODAY
WFC Earnings July 14th (tomorrow) - DOWN 1.90% TODAY
BAC Earnings July 14th (tomorrow) - DOWN 1.45% TODAY
36 trading days from June 1st highs would lead me to July 23rd (also happens to be my bday - this would top any cake I've had) for the beginning of a potential correction!
Time will tell but I will be watching how they react to earnings. If they make a lower high I will shuffle over to more of a bearish position and increase my hedge on call options in SH, UVXY, SPXU. New highs will indicate S&P has great potential to keep running! Both scenarios are still in play!
Another little touch to leave yourselves with encouraging a proper hedge:
***Copied from yahoo finance data***
Top 8 Holdings in SH (51.55% of Total Assets)
Name Symbol % Assets
S&P 500 Index Swap Bank Of America Na N/A 11.03%
S&P 500 Index Swap Bnp Paribas N/A 8.22%
S&P 500 Index Swap Goldman Sachs International N/A 7.45%
S&P 500 Index Swap Societe Generale N/A 6.74%
S&P 500 Index Swap Ubs Ag N/A 6.34%
S&P 500 Index Swap Citibank Na N/A 5.23%
United States Treasury Bills N/A 3.37%
S&P 500 Index Swap Credit Suisse International N/A 3.17%
***Copied from yahoo finance data***
Top 8 Holdings in SPXU (109.31% of Total Assets)
Name Symbol % Assets
S&P 500 Index Swap Credit Suisse International N/A 22.37%
S&P 500 Index Swap Societe Generale N/A 20.03%
S&P 500 Index Swap Ubs Ag N/A 18.23%
S&P 500 Index Swap Goldman Sachs International N/A 14.18%
S&P 500 Index Swap Bank Of America Na N/A 12.11%
S&P 500 Index Swap Bnp Paribas N/A 11.10%
S&P 500 Index Swap Citibank Na N/A 6.55%
United States Treasury Bills N/A 4.74%
Very similar trends in Canadian bank stocks if you care to take the time and compare TD, RY, BMO, BNS as well!
Thank you all for reading and PLEASE share your thoughts on this!
Like most of us on here, I have tremendous goals in life and don't want to settle for "being average". I grew up below the middle class by a single mother of four kids that worked two full time jobs to provide for her kids and I couldn't afford university. I have worked in the oil patch in Alberta Canada along with a few well paying labor intensive jobs to earn more money to find the more I earned, the more taxes I paid and expenses I seemed to have incurred. Life felt like a trap and this was brought forth by my favorite author and someone I'd consider a mentor now; Robert Kiyosaki, approximately two years ago.
I've taken it upon myself to educate about many subjects starting with banks and our monetary system over the past two years. (I wont get too in depth with this subject as it can be debated and go on, and on, and on) I was pleased to learn the Federal Reserve has nothing to do with the Federal Government and there is no reserves (who knew right!?)… Banks have fascinated myself as they hold the most of what I want. I've witnessed first hand ITS ALWAYS ABOUT THE MONEY many times over the past year, most recently with my wife and mother of our two kids - 11 months and three years old, battling breast cancer at the age of 32 years (about to go for her second round of chemotherapy) when she had to try a drug that makes her feel like crap and fail first because the other one that's substantially more affective with less side affects - costs more money.
Much like most wealthy people (I don't consider myself wealthy. Yet). I want people to create an empire, and success stories get me excited! So, I've decided this is my first step in sharing something with the rest of you that have influenced many trading ideas and decisions over the past two years. I would appreciate any feedback or opinions on this because as I've learned; NEVER let your opinion put the blinders on or emotions get in the way of a trade. (this was my cost of education haha).
THANK YOU TO EVERYONE THAT POSTS AND SHARES THEIR IDEAS - I have and will continue to learn from all of you at one point or another!
NOW to the "MEAT AND POTATOS"
The banks tops pre-Covid Crash - I'm calling this a crash because of how short lived losses were - December 23, 2019. 36 Trading days later we saw the S&P begin to take a bath. JPM, WFC, & BAC (the 3 largest banks in America) had a very visible divergence prior to this fall out creating lower highs as the S&P was making new highs which sounded an alarm in my head however I kept it to myself being newer to the markets and sold most positions sitting on what I had ready to buy the bottom. I didn't quite buy the bottom but definitely caught my sails in the winds on the way back up but that's besides the point.
Here we are 360 trading days later banks have clearly put in new highs June 1st
Since there is a clear divergence AGAIN in place between the big 3 and the S&P 500
JPM Earnings July 14th (tomorrow) - DOWN 1.40% TODAY
WFC Earnings July 14th (tomorrow) - DOWN 1.90% TODAY
BAC Earnings July 14th (tomorrow) - DOWN 1.45% TODAY
36 trading days from June 1st highs would lead me to July 23rd (also happens to be my bday - this would top any cake I've had) for the beginning of a potential correction!
Time will tell but I will be watching how they react to earnings. If they make a lower high I will shuffle over to more of a bearish position and increase my hedge on call options in SH, UVXY, SPXU. New highs will indicate S&P has great potential to keep running! Both scenarios are still in play!
Another little touch to leave yourselves with encouraging a proper hedge:
***Copied from yahoo finance data***
Top 8 Holdings in SH (51.55% of Total Assets)
Name Symbol % Assets
S&P 500 Index Swap Bank Of America Na N/A 11.03%
S&P 500 Index Swap Bnp Paribas N/A 8.22%
S&P 500 Index Swap Goldman Sachs International N/A 7.45%
S&P 500 Index Swap Societe Generale N/A 6.74%
S&P 500 Index Swap Ubs Ag N/A 6.34%
S&P 500 Index Swap Citibank Na N/A 5.23%
United States Treasury Bills N/A 3.37%
S&P 500 Index Swap Credit Suisse International N/A 3.17%
***Copied from yahoo finance data***
Top 8 Holdings in SPXU (109.31% of Total Assets)
Name Symbol % Assets
S&P 500 Index Swap Credit Suisse International N/A 22.37%
S&P 500 Index Swap Societe Generale N/A 20.03%
S&P 500 Index Swap Ubs Ag N/A 18.23%
S&P 500 Index Swap Goldman Sachs International N/A 14.18%
S&P 500 Index Swap Bank Of America Na N/A 12.11%
S&P 500 Index Swap Bnp Paribas N/A 11.10%
S&P 500 Index Swap Citibank Na N/A 6.55%
United States Treasury Bills N/A 4.74%
Very similar trends in Canadian bank stocks if you care to take the time and compare TD, RY, BMO, BNS as well!
Thank you all for reading and PLEASE share your thoughts on this!