Archive Category: 10x Profits Archives

One of the advantages to running a systematic, or “rules-based,” strategy is that you don’t have to stay glued to your computer screens. I remember the stark difference in quality of life between my first two trading mentors: One was a discretionary trader who was always stressed out and angry. The other was a systematic trader who spent most of his day playing table tennis and reading books in a hammock. (No joke!)

Last week, I told you about the “Powell put,” the idea that the Federal Reserve has the unstated but well-known goal of not letting the stock market crash. That implied backstop has felt less certain in recent months, as several Fed members suggested that tapering and rate hikes could come sooner than expected. Of course, they only hinted as much. Jawboning is one of the Fed’s favorite tools! Now, despite this sudden turn toward a more hawkish policy plan, most stock market indexes took the news in stride.

In late January of 2019, I wrote a 10X Profits piece with the cute title: “The Bullied Powell Put.” The Federal Reserve’s unstated but widely-known goal of not letting the stock market crash is nothing new. Borrowing from options lingo, traders use put option contracts to prevent losing money as stocks fall. The Fed “put” is the idea that the Fed won’t let stock prices fall too far before stepping in to prop them up.

We had good reason to be optimistic and bullish heading into November. The September pullback had resolved. The Nasdaq 100 had reclaimed its leadership status and was pushing into new all-time highs territory. And we entered the stock market’s strongest six-month stretch of seasonality. Overall, I still have a bullish outlook as we finish out 2021 and head into the new year. It’s now clear, though, that investors will first have to grapple with the implications of the latest COVID-19 variant, omicron.

My hope is that you’re not reading this note… That instead you’re with your family and friends, pigging out on home-cooked food … sharing stories, laughs and appreciation for all you have. Me … I’m thankful for you and the support you’ve given me over the years. It’s hard to believe, but 10X Profits turns five years old next month! And I’ve been running my Home Run Profits service (formerly Cycle 9 Alert) since 2011! Markets are evolving fast. All the recent financial innovations make it, in my opinion, the best time ever to be an active investor! In short, I’m thankful for the opportunity to serve you and for the loyalty you’ve shown me over time.