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Market Remains Volatile But Range-bound

By Andrew Aziz  |  
Andrew's Newsletter  |  
Sep 20, 2023

Dear Traders,

As you know, the market is not straightforward on some days, and today was one of those days. Today, I traded $TQQQ and $TSLA. While I was in the red with the Qs, I managed to come out with a $2,000 profit at the end of the day.

In my recap, you can see that I had to exit my $TSLA trade two times to control my risk. It wasn’t until the third trade that my strategy worked, and I made a bigger profit, covering my losses on $TQQQ.

Be sure to watch today’s recap here and feel free to ask any questions in the comments section. I’ll personally respond to them.

Market remains volatile but range-bound. Everyone seems to be closely monitoring economic data and, of course, the upcoming Fed meeting tomorrow. Bond traders are pricing in a 99% chance that the Fed will maintain its current rates for this meeting.

Today, Canada’s inflation ticked up, causing the CAD to strengthen. This suggests that the Bank of Canada may increase rates again. This higher inflation is primarily due to the increased energy prices and additional taxes imposed by the Federal Government of Canada on fuel costs. Personally, I have four variable mortgages, and three of them are in negative amortization. It seems I should prepare for further challenges in managing my accounts.

All 4 indexes are sideways over the last 3 months of trading. Charts by

All 4 indexes are sideways over the last 3 months of trading. Charts by

As you see, $SPY, $QQQ and the Dow Jones did not move much in the last 3 months and are trading sideways. Now, the main question for investors is how to make money in this choppy and sideways market?

There are some good strategies for profiting in sideways markets:

  1. Option Selling in Range-Bound Stocks: This can be a viable strategy.
  2. Funds like $JEPI or $JEPQ: I’m heavily invested in these and they provide monthly income. I’m currently receiving around $30,000 per month from my $JEPQ position.

If you’re unfamiliar with how these funds work, please watch our video where Ardi explains their mechanics. They are usually less volatile than benchmarks like $QQQ and $SPY and can be excellent vehicles for bear markets or sideways markets. However, they may underperform in a bull market.

  1. High-Quality Bonds: Ardi recently discovered some fantastic bonds offering over 7% returns, which are relatively risk-free in the short term! For example, there’s one for Ford right now.

If you’re interested in bond trading, Ardi is preparing a course, so make sure to reach out and follow his X posts on bonds.

Tonight, we have an essential webinar by Megan on”Mastering the 5-Minute ORB Using Options.” Join Megan as she delves into one of BBT’s most beloved strategies, the 5-Minute ORB (Opening Range Breakout), using options. In this session, Megan will explain how to execute this strategy effectively, including insights into stock selection, when and how to utilize different strike prices, and key risk management techniques tailored to morning volatility.

As you’re aware, our 5-Minute ORB research paper published by Carlo Zarattini and me has gained significant attention and even been reproduced by Princeton researchers. If you’d like to learn more about it, read the paper here and see its impressive ranking among the top 10,000 papers in the field.

One important aspect highlighted in the paper for better results is the proper use of leverage or leveraged products, such as $TQQQ or inherently leveraged options contracts. That’s why it’s crucial to join Megan’s webinar to learn how to trade the 5-minute ORB with options and benefit from account growth.

Last but not least, don’t miss out on our 50% off Back-to-school discount on our Elite Plans. Get one year of full access to our community at a 50% discount!

See you in the chatroom!