Author: The INO.com Team

DOW Hits 29,000 For First Time

Posted on by The INO.com Team

Hello traders everywhere. Stocks turn mixed after the DOW hit 29,000 for the first time on Friday, ultimately hitting an all-time intra-day high of 29,009.07. Since then, the DOW has turned negative on the day and is down roughly -100 pts or -.3% heading into afternoon trading.

However, the overall weekly picture of the market looks great. The DOW is close to posting a +1% gain sitting at +.95% after hitting 29,000. The S&P 500 will post a gain over one percent with a gain of +1.3%. But they can't compete with the tech-heavy NASDAQ which will post a weekly gain over two percent at +2.1%

The U.S. economy added 145,000 jobs in December. Economists polled by Dow Jones expect the U.S. economy to have added 160,000 jobs in December. Wages also disappointed, growing by just +2.9% on a year-over-year basis. Economists had forecast a gain of +3.1%. December was also the first month since July 2018 that wages grew by less than 3% from the year before. Continue reading "DOW Hits 29,000 For First Time" →

Options-Based Portfolio: 50% Cash and Matching S&P 500 Returns

Posted on by The INO.com Team

2019 shaped up to be a historic year for the stock market indices. The S&P 500 posted its fourth-best annual return in over 20 years, coming in at a ~29.5% return (my options-based portfolio has generated the same returns). Only two other years have outpaced these 2019 returns. These occurred in 1995 and 1997, posting returns of 34.1% and 31.0%, respectively. 2019 was a unique year on multiple fronts, most notably because the market returns outpaced even the most bullish forecast by any Wall Street analyst. The markets roared higher in the face of impeachment proceedings, U.S.-China trade war, Federal Reserve actions, inverted yield curve, and slowing economies abroad. Furthermore, for the first time in history, the U.S. economy has started and ended a decade without a recession, with the economy expanding for a record 126 consecutive months (Figure 1).

Options-Based Portfolio
Figure 1 – S&P 500, Nasdaq, and Dow Jones all set all-time highs as 2019 came to a close. The markets are in rarified territory with stretched valuations absent of any volatility. The Santa Claus rally capped off a euphoric market, generating the best returns in over 20 years

A data-driven, options-based portfolio sells options and collects premium income in a high-probability manner to generate consistent income for steady portfolio appreciation. This strategy mitigates risk and circumvents drastic market moves and is done without predicting which way the markets will move. Options are a great way to generate superior returns with less volatility in both bear and bull market conditions over the long term. Despite my 2019 performance lagging the S&P 500, the options-based strategy has generated the same returns when factoring in the Q4 2018 market sell-off. As 2019 comes to a close, my options-based portfolio returned ~19% relative to the S&P 500 return of 29.5%. Despite the epic 2019 market, when including the market sell-off of Q4 2018, my options-based portfolio has returned 11.6% relative to the S&P 500 return of 11.2%. I was able to achieve the same market performance over the past 15 months with my current cash position at ~50% of my portfolio. Continue reading "Options-Based Portfolio: 50% Cash and Matching S&P 500 Returns" →

Stocks Fall After U.S. Airstrike

Posted on by The INO.com Team

Hello traders everywhere. A day after setting new record highs, the major indexes and overall stock market are barely hanging on to weekly gains to start the new year. The U.S. confirmed that an airstrike killed Iran's top military commander, sending oil prices surging and hiking geopolitical concerns.

The DOW plunged 360 points at the open only to bounce back and trade roughly 175 points lower on the day hanging on to a weekly gain of +.16%. The S&P 500 is close to finishing the week in negative territory with a small gain of +.10% while the NASDAQ has a little more wiggle room with an increase of +.50%

On Thursday, the DOW advanced 330.36 points +0.9% to 28,868.80 and notched its biggest one-day gain since Dec. 6. The S&P 500 closed +0.8% higher, marking its best performance since Dec. 12 at 3,257.85. The NASDAQ gained +1.3% to end at 9,092.19 and had it's best day since Oct. 11. The major averages hit their session highs in the final minutes of trading. Continue reading "Stocks Fall After U.S. Airstrike" →

Stock Market Coast Into Weekend

Posted on by The INO.com Team

Hello traders everywhere. After a record week, the stock market is coasting into the weekend on subdued trading after hitting record highs at the open and posting a weekly gain. The NASDAQ topped the 9,000 mark for the first time Thursday, closing in record territory, lifted by a jump in Amazon shares on a record holiday shopping season. The NASDAQ has risen for 11 straight days, the longest winning streaking since July 2009.

The NASDAQ leads the way with a weekly gain of +1.1%, followed by the DOW with an increase of +.80%, and the S&P 500 will post a weekly gain of +.70% bringing up the rear. However, the S&P 500, which is up 29.2% in 2019, is really close to reaching historic proportions. The index will post its best year since 1997, with an annual gain of more than 29.6%.

Friday marks day three of the so-called Santa Claus rally period, which is historically beneficial for stocks. Since 1950, the S&P 500 has rallied an average of 1.3% during the final five trading days of the year and the first two sessions of the new year, according to the Stock Trader's Almanac. Continue reading "Stock Market Coast Into Weekend" →