Championship Blog

Athlete Performance Roundup (Week 1)

The second edition of the FlowBank Championship is officially underway. As we take a look into strategies and market movements from the first week, it’s clear that this competition is both a measure of trading skills and taking advantage of market insights. 

 

The initial trades have set a competitive tone, highlighting the athletes' readiness to capitalize on fluctuating market conditions. In this analysis, we will explore potential trading opportunities, and consider economic indicators that may influence future moves.

Who's Winning?

Here’s the running total as of May 8th, 2024. 

  • Peter Sagan has a total of 15 trades totaling 71,412 CHF. 
  • Israel Adesanya has 11 trades totaling 104,236 CHF.
  • Esteban Ocon has 20 trades totalling 946,392 CHF.
  • Ana Markovic has 4 trades 545,700 CHF. 
  • Antoine Dupont has 12 trades totalling 38,266 CHF.
  • Anthony Joshua has 34 trades totaling 403,824 CHF

 

As a reminder, their trading account balances (including all P&L)  will move in real time when markets are open. Open positions - meaning a trade that has not been closed - shows an ‘unrealized’ profit or loss. A trade must be closed to ‘realize’ the result.

 

Also note, the initial account balance was 100,000 CHF. Total positions above this come from A) winning trades or B) the use of leverage. Total positions below 100K mean that either A) some positions are in a loss or B) Not all of their capital has been deployed in trades yet. 

Who's Trading What?

Peter Sagan is buying volatile biotech stocks with some forex trading too. It's a high-risk, high reward strategy. His top three positions are Biomea Fusion, Inc. (BMEA), Dyne Therapeutics, Inc. (DYN) and also the USD/JPY forex pair.

Israel Adesanya is investing in big tech, striking a balance between stable growth potential and innovation. His top positions are Apple Inc. (AAPL), Meta Platforms, Inc. (META), Alphabet Inc. (GOOG).

Esteban Ocon is diversifying his portfolio with investments in cybersecurity, finance, and e-commerce stocks. His top 3 investments are Palo Alto Networks, Inc. (PANW), Blackstone Inc. (BX), Alibaba Group Holding Limited (BABA).

Ana Markovic has been drawn to the allure of precious metals, while also enjoying the stability of the world’s largest company. Her only three positions are Gold, Silver and Apple Inc. (AAPL).

Antoine Dupont’s trades are mostly in European blue chip stocks with a diversified blend of companies, spanning sport, luxury, energy, and aerospace. His top 3 holdings are Robertet SA (0NZN.L), Thales SA (HO.PA), LVMH Moët Hennessy - Louis Vuitton (MC.PA).

5 Champion Trading Strategies to Try

The athletes have plenty of strategies available, with May offering multiple avenues for potentially lucrative trades:

 

  • Earnings Season

Companies announce how much money they've made every few months, and this can affect their stock price. If a company's earnings are better than expected, its stock price might jump up. If their earnings are disappointing, the price could drop. 

 

It’s Earnings Season’ right now - a period of a few weeks when most major companies report their results. Traders can make bets on these movements by buying stocks they think will go up, or betting against stocks they think will go down after these announcements.

 

  • Dividends

Sometimes companies pay out a part of their profits to their shareholders, this is called a dividend. 

 

Recently, Google-parent company Alphabet announced it would pay dividends for the first time. This news might make more people want to buy Alphabet (GOOG) stock, hoping to get a share of the profits, which could drive the stock price up. On the flipside Amazon decided not to pay a dividend yet, possibly disappointing those who thought they might join Google, Apple, and the other Big Tech companies who do.

 

  • Economic Data

Things like unemployment rates and inflation i.e. the cost of living (CPI data) are updated regularly and can indicate how well the economy is doing. These updates can influence the stock market because they affect investor confidence. Good news might boost stock prices, while bad news might lower them.

 

  • International Stocks

Investing in companies from different countries can be a good strategy. For example, if Germany's main stock index is hitting new highs, it might be a good idea to invest in German stocks. This can help investors spread out their risks and take advantage of growth in various parts of the world.

 

  • Momentum Trading

This is about following the trend; if a stock or another market like a commodity or cryptocurrency is already going up, some traders will buy more, expecting the rise to continue. Both Bitcoin and gold hit a record high in April and if our athletes are still bullish, they will buy into the uptrend. 

Most Anticipated Earnings Releases

As we look at the calendar stretching out across May 2024, several key earnings releases stand out, including high-profile companies like Uber, Walt Disney, Nvidia, and Apple. 

 

Apple shares went up 5% following its earnings release on May 2.

 

 

 

 

 

 

 

 

 

 

 

 

 

You can keep up-to-date on companies reporting earnings with Earnings Whispers

Dividend Strategies

With the announcement of dividends, such as Google’s impending payout, athletes can try to take advantage of any extra interest in dividend-paying stocks.

 

Here is a list of the biggest companies set to pay dividends this month.

 

 

Source: FlowBank

Economic Data to Trade in May

A schedule of important economic data is available to all traders, including the athletes. The athletes can execute trades around data release times and use tools like stop-loss orders to manage risks.

 

In May some of the biggest indicators include: 

 

  1. Unemployment Rate:  Indicates economic health. A lower rate generally strengthens the US dollar and boosts stock prices.

  2. Interest Rates: Decisions by the US Federal Reserve influence the stock market and the value of the dollar. Steady rates amid rising inflation suggest economic confidence, which can buoy markets.

  3. Consumer Price Index (CPI): Measures inflation. Rising CPI can lead to expectations of higher interest rates, affecting both forex and stock markets.

 

Here’s a simple way to try to trade the news as it comes out:

 

Forex Trading: Buy the dollar if data suggests rising rates; sell if the opposite is true.
Stock Trading: Positive data can lead to buying stocks, while negative data might prompt selling.

Market Trends to Watch

Traders could look to top risers and fallers over the last month and look to buy into the strong momentum or buy the dip.

 

Here are the top 5 and bottom 5 performers, as well as the most traded among the biggest 500 US stocks (in the S&P 500 index):

 

 


Stay tuned for weekly updates as these financial athletes navigate the complex world of market trading, aiming for the top spot on the podium.