May 28, 20224 min
Hey Wealth Builders!
This week, the major indices finished in the green as a response to encouraging inflation data. However, we still do not know how the Federal Reserve will respond and how quickly they will raise interest rates in the upcoming months.
Technical Analysis 📈
SPY
SPY rallied four consecutive days and it seems that institutions want to keep it above the $380 level. However, it's nearing some resistance lines. I would like to see if the ETF can break and hold above the $416 level. I personally am not yet convinced that we are going to continue this rally until we see higher highs and higher lows.
QQQ
I will want to see QQQ break and hold above the $317 level.
DIA
I will want to see DIA break and hold above the $337 level.
SBUX
SBUX is nearing its resistance line. Let's see if it can break above the $77 level within the next few days.
MSFT
MSFT is nearing its horizontal resistance of $273. If it breaks above, I want to see if it can break above $300.
AAPL
AAPL is also nearing its horizontal resistance level of $150. If it breaks above, I want to see if it can break above $157. Remember that AAPL and MSFT are some of the main movers of the broad S&P500. They usually dictate the price movements of the other components in the index and how the overall markets move as a whole.
NKE
NKE is also nearing its resistance line. I want to see the stock breaks and stays above $116.
What Are The Next Steps?
I know I've been on repeat over the past several months, but I do not recommend starting any new wheels or investing large sums of capital at the moment. Why? I want to make sure we are not catching a falling knife and compounding any unrealized losses. The relief rally we experienced this week may be short-lived and it may be wise to simply be a market observer.
If you've been patient and following Call to Leap discipline over the past couple of months, you should be growing your cash reserves in your account from your monthly/weekly deposits, covered call premiums, bear call spread premiums, and dividends. We are still going to patiently wait like a lion and attack when we see a trend reversal.
I will talk more about bear call spreads in this week's Premium Membership Positions.
Ask Steve 💭
Let's see what some of our members asked this week. Here are the top questions we received:
John
Q: What do you recommend I invest in for my first cash secured put?
A: We currently do not recommend starting any new wheels during these market conditions. Consider checking out our membership positions for more updates.
Q: In this market right now, what do you recommend I do right now? What should I do to make money?
A: We currently recommend to stay patient, and wait for a trend reversal and positive market sentiment before starting new wheels and picking up shares. For now, you can consider setting up bear call spreads on the stocks mentioned in our premium membership positions.
If you are a new member, we welcome you to our wealth building community! We know you may be eager to start investing, but with current market conditions, we recommend respecting the trend. Once the market shifts, you'll be able to start wheels and perhaps even start LEAPS! When this happens, we'll all be collecting nice premiums! Hang in there and consider checking out our previous membership positions to see how we've been navigating the market!
Tina
Q: When will markets go back up?
A: We aren't too sure since we can't predict the future. However, if we see data that inflation is decreasing and hear that the Federal Reserve is going to slow down or halt interest rate hikes, there may be a good chance that the markets will reverse back to a bullish trend.
Earnings 📰
COST
Costco's total quarterly revenue was $52.6B, which increased from $45.2B from the same quarter last year. This is a 16% increase.
Net sales revenue was $51.6B, which increased from $44.4B from the same quarter last year. This is also a 16% increase.
Revenue from Membership Fees was $984M which increased from $901M from the same quarter last year. This is a 9% increase.
E-commerce sales increased by 7.4% year-over-year.
I still favor COST as my long-term holds and will be keeping a close eye on the price action. I will most likely add more shares once the markets resume in a bullish trend.
Submit Your Questions 🙋♂️🙋♀️
Have any other questions? Before asking me and my team, feel free to check out our Level 1 FAQ. This FAQ is located on the Dashboard. You might find what you're looking for. 😊
If you do have questions, make sure to ask them on our Dashboard, rather than asking us via email. We also encourage you to watch all of the core video content and some of the past archived videos, read past Membership Positions, and take all the quizzes before sending us your questions.
Join Our Discord 💬
Investing, trading, and building wealth was a lonely journey for me. This is why my team and I created a Discord group for you and the other members to shares ideas and support one another. You don't have to go through it alone as we're all here to help. 😉
Make sure to check it out on the bottom of your "Dashboard" and follow the instructions on how to sign up. Coming from a teacher's perspective, I believe it's important to engage in conversations with people who are also seeking to reach financial freedom.
Remember that we are a community of wealth builders at all different levels, so be positive, kind, and helpful to others, so we can help each other get to financial freedom much faster.
Stay vigilant for the next coming trading days to see if we break any patterns in the markets. I'll update you if we recommend pivoting our strategies.
Stay patient and enjoy your Memorial Day weekend! 😎
-Steve and the Call to Leap Team
The following article is strictly the opinion of the author and is to not be considered financial/investment advice. Call to Leap LLC and the author of this article does not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.