Hey guys, Welcome to your Money Link weekly review.

This week saw the Bear awaken in global financial markets. Weakness out of China, compounded by spreading Delta variant, and a hawkish Fed saw stocks get hit across most sectors. Commodity related stocks, China stocks, and travel stocks were particularly vulnerable. I expect a choppy end of the month and yuuuge volatility in the Fall which should be really great for Money Link opportunities! The volume is still low in the last dog days of summer but I expect real fireworks post Labor Day.

Let's look at our positions



We exited this trade late this week as China was breaking down, perhaps a day too early but a nice winner all in all. I will look to re-enter this trade in a few weeks after we get the bounce in Emerging Markets, I think we might be in for some S&P selling in the coming weeks as well.

But I’ll take a swing trade Money Link like this one every week if I can…  The EEM put worked for 260%… not bad.


The weakness in global economic growth and fears of Covid shutdowns took yields lower this week. Which had a negative effect on our XLF/TLT money link. I expect the 10 year bond yields to rise again here as the reality of Fed tapering becomes more clear, and I still view banks as a relatively solid sector in this market.



This ML has been a bit of a late starter, but I expect the rallies to be led by stocks like Square so I’m still bullish on this Money Link. I do however need to see Square start to pop here within the next week. The option I’m really excited about is the V put.

If you look at this chart of Visa I think we could test March lows if we break the 200 day moving average (yellow line)  which would see our puts at $30 an option…


The Covid uptick is a big reason we saw bearishness this week and market selling across the board. Same thing happened last year but the stocks that started to rip to the upside first were stocks like ETSY. I’m patient and believe that will be the case again.  Which is why we rolled into September options.

The last month’s pair chart shows the Money Link is back on the upswing as well.


Semiconductor stocks have been smashed across the board. That being said, the ML between QCOM/TSM continues to grow as you can see on the chart below. Hong Kong is already entering a bear market down near double digits this year and I expect Taiwan to follow…

Which is why those TSM puts have already almost doubled in less than a week… I see huge upside on that trade.