Tickers discussed: SPY QQQ IWM FB AAPL AMZN GOOGL MSFT NFLX TSLA SMH ITB PYPL UPS PLNT CRWD
Before the Bell is premarket prep for active traders. The note provides detailed stock market technical analysis focused on the indexes and FAAMGs. Key levels and trading locations are provided, along with trading plans and timely commentary to keep you on the right side of the trade.
Earnings are winding down but still a few names to watch. ORCL, LEN, ADBE, SWBI
The video is a detailed technical review of the indexes and FATMAAN names. All the key trading levels are identified along with commentary and trade plans for each ticker. Trade ideas are also discussed. Run the video at 1.25x to reduce run time.
Find the Video HERE
Begin the Squeeze
To sum up yesterday’s FOMC announcement, I think we just saw PEAK FED. What I mean is that we’ve climbed the mountain of liquidity to the pinnacle, now we’ve taken the first half step down the other side. THe FED acknowledged inflation was higher than they thought and admitted that it may be more persistent than once thought. But no change in asset purchases. Coming out of the announcement that $USD spiked almost 1% and rates popped 7bps to 1.57% on the 10 year. A devastating combo for gold and commodities in general but good news to financials as banks rallied into the close. I plan to stay relatively neutral through the end of the week with quad witching tomorrow and to insure the knee-jerk FED move wasnt a head fake.
Re-Posting – Thoughts on Trading the Meme Names
I’m not one to tell you not to gamble, but a few thoughts if you decide to jump in.
- Treat all trades like lottery tickets. Expect to lose it all. Dont use monies that if lost, will put your trading account or worse at risk.
- Watch overnight Risk. One in the hand is better than 2 in the bush. Don’t underestimate how deep or severe an overnight rug pull can be. Consider taking wins when you can.
- Market Makers are paid to Win. These guys are no dummies, They’ve jacked option IV to the moon making options incredibly expensive and thus harder to win. Make sure you know your risk / reward profile before to dive in. For instance, I priced some $25 strike PUTs in AMC a couple of months out. They were $25. So if AMC went to zero, I would get my money back. Not the kind of trade that makes sense.
- NEVER SELL NAKED CALLS or PUTS. While it may be super tempting to sell vol premium at the jacked levels, selling naked options exposes you to UNLIMITED RISK. If you sell anything, it must be a spread to limit / define your risk.
$IWM 30 Min
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