Brace Yourself, The Taper Is Coming!
Thank you to everyone who has signed up to join Peak Capital Trading’s latest boot camp. Registration for this session is now full! We can hardly wait to start working with you on Monday.
If you want to build your TradeBook and take it to the next level, please check out our new web-based REPLAY feature here. There is no cost to utilize this new offering from BBT. While at the site, do ensure you add your name to Simon and Aiman’s mailing list in order to receive emailed homework and training exercises.
Although yesterday was brutal for all indexes, a recovery is taking shape as I am typing this newsletter. This morning, the traders in our chatroom experienced some excellent trading on Microsoft and Rivian. Please watch the recap that Jarad and I posted HERE regarding our amazing reversal trades on RIVN (from $75 to over $80).
Today – January 6, 2022 – certainly lived up to this day’s “excitement” last year. The market smashed to pieces yesterday as the Federal Reserve announced that they are feeling confident about the state of the economy and looking to accelerate their plans for interest rate hikes and balance sheet reductions. This is fairly unsurprising, given the rampant discourse about inflation. While Omicron is attacking everywhere, including in the US (which is reporting 1 million new cases daily), the Fed isn’t feeling any sense of concern or worry. Who knows, maybe it’s because employment is strong, hospitalizations have been surprisingly low, and a growing sentiment of “Who cares about COVID?” is sweeping through the country.
Someone asked about the margin rates of one of the brokers and I responded in the chat. While exact broker details can be seen here, the answer is quite simple. Interactive Brokers charges 1.5% annual margin interest and charges you daily. For example, if you borrow $250,000 from them, you pay a blended interest rate of 1.280% (or $3,200 interest) on your loan per year, which works out to around $9 per day. You can check the calculations yourself here: https://www.interactivebrokers.co.uk/en/index.php?f=46782
For all Elite members, tonight we are holding two of our always informative Thursday Mentorship sessions. Ed Martin’s session begins at 4:30pm ET, and Thor’s notorious mentorship session commences at 8pm ET. I hope you will join me in learning from both of them!
As ever, I look forward to seeing you in the chatroom and in our webinar rooms. Please do not hesitate to let me know if you have any questions about our community.
To your success,