Power Plays Weekly Roundup
December 16, 2022
By Scott Redler
It was another rough week for the market as we had downside reactions to both the CPI Tuesday and the FOMC on Wednesday.
I didn't add any Power Plays specifically because we had those two big binary events.
And it's a good thing because pretty much anything I'd have picked would be down.
We exited Netflix (NFLX) and Taiwan Semi (TSM) last week. And while those exits might have felt premature, both are back below where Power Plays got out. Netflix did have a big pop but it's given it all back.
Now the SPX is in danger of more downside so the game plan remains the same: stay out of trouble.
There are many opposing opinions out there. The Fed says they will be fighting inflation until 2025 while the Street things they will end up cutting rates in the second half of 2023.
And if you look at my positions disclosures below, I have long options positions to fix my risk, along with SPY put spreads to potentially profit from downside.
So I'm not interested in throwing you ideas until I'm sure the market has stabilized and we have clear opportunities with a reasonable risk-reward ratio.
In the meantime, let's do our best to keep our heads in check. It can be frustrating to side on the sidelines, but at times like this, we have to focus on cash conservation.
Have a great weekend.
Scott Redler Positions Disclosure as of 2022-12-16 at 10.20.35 AM