Trading Justice

In this episode, Coach Greg 'Old Money' Holmes joins us to discuss the recent newsletter he wrote on the True Fundamentals of Investing. During our feature presentation, Coach Greg discusses some of the most important fundamental concepts he considers before investing including the value of a company, stability, how to determine a fair price, P/E ratios, Return on Invested Capital, Operating Margins, and Dividend payments. Listen in for some insight and wisdom on an important topic for new and veteran investors alike.

Before that, Coach Matt, Mark, Tim, and Greg analyze the broad market conditions during our skyline. Last week the FOMC held a two-day meeting, followed by a policy statement and press conference with Chair Jerome Powell. The market bought on the initial price response Wednesday, seemingly liking what the Fed had to say regarding future economic growth, the prospects for the jobs market, maintaining low-interest rates, and monthly bond purchases. Essentially the Fed 'said' everything the market wanted to hear, but the market sold on Thursday after digesting the reality of what the Fed's statement means. Essentially, if things are going to get better as fast as they say, when will they raise interest rates? We discuss the mixed messaging from the Fed and the technical conditions in stocks, commodities, the dollar, and bitcoin during this weekly segment.

1:53 Market Skyline

1:00:40 Greg Holmes

In this episode, the Coaches discuss the Long Call Strategy, its strengths, weaknesses, and how it fits in a trader's overall portfolio design. There are different types of traders in the market place but two specific groups stand out - directional (delta) and cash flow (theta). Long calls are a common tactic used in directional trades by traders who want to take advantage of price appreciation, but also want to get control of the underlying asset without having to put up all of the capital required to buy the shares directly. Listen in as the coaches discuss some examples of when to trade long calls, the impact of implied volatility changing on long calls, and some of the rules they use when entering into this trading strategy.

Before that, the coaches discuss the recent market action during our weekly skyline. Stocks soared last week across the board with several indices reaching all-time highs like the S&P 500, Russell 2000, and Dow Jones Industrial Average. The economy reopening theme continues, President Biden signed a $1.9T stimulus package and the FOMC is set to meet this Wednesday with their latest commentary and policy updates. Listen in as the coaches analyze all of the price action and news and give some insight into what is happening in markets right now.

Market Skyline: 1:45

Feature: Long Call 40:35

In this episode, the coaches discuss the Federal Reserve and how they can impact markets. Coach Matt explains how the Federal Reserve uses tools like Quantitative Easing, the Fed Funds Rate, Operation Twist, and others policy initiatives to achieve their stated goals and dual mandate of controlling inflation and fostering employment. Listen in to learn more about these topics during our Feature Presentation.

Before that, Coach Mark, Tim and Matt analyze the broad market conditions during our weekly skyline. Stocks have been mixed the last week, as Technology has been under pressure and selling off, while areas like Financials, Energy and Industrials have continued to show strength. Crude Oil has continued it's strength, while Bitcoin is holding up. Listen in as we discuss all of the price action and news that has grabbed our attention over the last week.

Lastly, in the spirit of the NBA All-Star game yesterday, Coach Mark asks Coach Tim and Matt to pick their top 10 'All-Star' investments from a list of 20 Blue Chip companies across different industries. Who would you take as your #1 pick?

2:18 Market Skyline

28:30 Fed Tools

1:17:05 Investment Draft

In this episode, Matt, Tim, Mark and Tyler have a discussion about the current state of inflation and it's impact on the economy, consumers and investors. Inflation is the increase in prices and the fall in the purchasing power of money over time. We've all felt the impact of inflation, whether its from shopping at the grocery store, real estate values or the cost of a gallon of gas. Listen in as the coaches discuss inflation, why it's important to understand, and most importantly what to do about it as an investor.

Before that, we analyze the market conditions during our weekly skyline. Stocks rebounded Monday after some selling pressure in the previous week. Sector leadership in financials, energy, industrials and communications has been clear over the past month, and they all were up with the markets broad based advance. Listen in as we discuss the biggest stories impacting markets right now and analyze the technical conditions.

Lastly, Coach Mark has a game for Matt and Tim where they have to guess the price of consumer goods and services at different points in time. It's a fun game, but a reminder of the true impact of inflation, as gas, bread, home prices, concert tickets and more have all changed over the years. 

1:40 Skyline

34:10 Inflation

1:41:45 Game

In this episode, the coaches analyze the potential in Energy stocks moving forward. Energy has been a hot sector as of late, up +5% the past week, +17% year to date, and +26% in the last 3 months. For years, Energy stocks had been out of favor for many participants in the market. Recently Crude Oil has started to gain some bullish traction and has moved from the high $30's in November to up over $62 dollars per barrel today. Listen in as the Coaches discuss the potential for Energy stocks to capitalize on higher crude oil price and potentially play some 'catch up' to the broad markets during our Feature.

Before that, we analyze the broad markets during our weekly Skyline. Earnings season is approaching the end for this quarter and stocks have held up pretty well. For the month, Indexes are up across the board, although they've stalled recently. Oil has been on fire, gold is fighting for support, and Bitcoin volatility continues. Listen in as we discuss all of the price action and news that is impacting markets right now.

Lastly, Coach Mark has a quiz game for Matt and Tim with questions about oil, oil history, and gas prices. Do you remember the price of a gallon of gas in 1961? How about when you graduated high school? Listen in as we have some fun answering Mark's quiz questions.

1:30 Skyline
47:20 Energy Sector
1:36:40 Closest to the Hole

In this episode, we discuss special purpose acquisition companies (SPAC's) also known as 'blank check' shell corporations. SPAC's have been around since 1993 but their popularity has exploded in recent years. SPAC's are used to turn private companies into publicly traded companies outside of the traditional IPO process. In 2019, SPAC's raised $13.6 Billion in funding, in 2020 that number was $80 Billion and in 2021 so far they've already raised $44 Billion. Listen in as Coach Mark details the history of SPAC's, explains how the process works and discusses some of the opportunities in them. 

Before that, the coaches discuss the current market conditions during our Skyline. Earnings season is near wrapping up as most companies have reported - and beat - on their Q4 numbers. Stocks are at or near all-time highs as stimulus optimism, strong technical charts, and general bullishness have continued. And, bitcoin is near $50,000 per coin after a week of news around corporate adoption from the likes of Bank of New York Mellon, to Mastercard to Canada approving it's first Bitcoin ETF. Listen in as we discuss all the price action and news.

Lastly, Coach Mark has some great quotes that relate to money and investing where Matt and Tim have to guess who said it and 'name that quote'. Play along as we have some laughs during our weekly special segment.

1:12 Market Skyline

53:30 SPAC

1:50:00 Quote This

In this episode, we welcome friend and recurring guest Pete Thomas back for a conversation about markets, investing, and precious metals. Pete has been in the metals business for over 4 decades and has seen a lot of crazy action including when the Hunt brothers tried to corner the market in 1979-80 and silver ran to $55 an ounce. Matt and Pete sit down for a discussion about what is happening right now in metals and what to look for from gold, silver, and other metals moving forward into 2021.

Before that, we analyze the broad markets during our weekly market skyline. Stocks are at all-time highs after a tremendous bounce last week. The stock market had its best week since November on many indexes and part of the reason has been continued optimism regarding stimulus, strong Q4 earnings results (particularly in revenue beats), and bullish technical trends. We discuss these themes and more during this popular weekly segment.

Lastly, the Tampa Bay Buccaneers and QB Tom Brady won the Super Bowl on Sunday night. This marks Brady's 7th Super Bowl victory. In the spirit of football, coach Mark has built some quiz questions to ask Matt and Tim about last night's game.

1:24 Market Skyline

20:20 Pete Thomas

1:19:52 SB Quiz

In this episode, Matt, Tim, and Mark discuss the recent mania around Gamestop. Gamestop, a heavily shorted company that has been in a downtrend for years prior to the last 6 months. The stock broke out last week with extreme price movement. On a day by day basis, the stock has moved so violently that it has caught the attention of the public as well as market participants. On Thursday, Robinhood (and other online brokers) stopped opening transactions on GME as well as other symbols. Robinhood has come under fire for the moves, and there are still lots of questions surrounding their actions, what happened and why. Listen in as we discuss what has been happening, what it means for traders, and what we should watch for moving forward.

Before that, we analyze the broad markets during our Market Skyline segment. Stocks are up on Monday after a pullback last week. There are new conversations starting regarding stimulus - where President Joe Biden is meeting with 10 republican senators over their trimmed down proposal. Earnings have been busy, with Apple and Microsoft reporting last week (along with over 100 other S&P 500 co's). Also, Silver rocketed higher on Monday as it's captured the attention of many traders. Listen in as we discuss all of the news and analyze what to watch for moving forward in this weekly segment.

Lastly, Coach Mark brings some questions from our community for another edition of the Coaches Mailbag. Are trail stops viable on stocks like AMC rocketing higher? How would you manage a short call on SLV after the big rally? Listen to the coach's answers in this informative segment.

1:55 Market Skyline

48:36 GME Mania

1:46:16 Coaches Mailbag

In this episode, the coaches discuss how they approach earnings reports as an investor. We are in the heart of earnings season now, where this week we see nearly 25% of the S&P 500 companies report their results. Earnings can create price gaps, some big, some small, and some predictable while others are not.

Listen in as Coaches Tim, Matt, Mark, Emily, and Tyler discuss how they approach earnings reports, whether they avoid them, why they decide to collar or hedge when they do, and in what circumstances they do nothing and accept the volatility risk. We also go through some examples of companies that have upcoming earnings as case studies to discuss how we might approach them.

Before that, we discuss the broad market conditions during our market skyline. Stocks remain bullish in general, but we've seen some areas of the market exhibit relative strength.  The technology, communications, and consumer cyclical sectors have outperformed recently, while energy has lagged in the short term. Will that theme continue? Listen in as we discuss broad market conditions, sector rotation, and commodities during this weekly segment.

2:00 Market Skyline

30:30 Understanding Earnings

In this episode, the coaches discuss whether the markets are currently in a 'bubble' or not.  The Shiller P/E ratio is the second-highest it's ever been, valuations are extreme for many companies and the technical charts are at all-time highs.  But, that alone doesn't determine whether the market is indeed in a bubble. We examine 5 different areas and discuss them including valuation, a plausible future, irrational exuberance, the Fed Put backdrop, and the easy money that has been made by some recently to determine the answer to this question. 

Before that, we analyze the markets during our skyline. Netflix reported earnings on Tuesday and gapped up towards all-time price highs breaking out of a long term channel. That news alone gave the stock market a boost, and prices broke out across many indices. We discuss the news, price action, and more during this weekly segment.

Lastly, Coach Mark asks Matt and Tim to guess the greatest quarterbacks of all-time. This weekend, Aaron Rodgers and Tom Brady go head to head in the NFC championship game, and they are two of the greats. Where do they and others fall on the list of top 10 greats? Listen in to find out in this fun segment.

1:40 Market Skyline

33:30 Bubble

1:24:10 Top 10 QB