Risking 1 to Make 4 by Shorting the SPY
I don’t hedge often, but when I do, the charts look like they do now. Here is a low cost, high reward method of hedging using the SPY and a bearish butterfly.
I don’t hedge often, but when I do, the charts look like they do now. Here is a low cost, high reward method of hedging using the SPY and a bearish butterfly.
With uptrends in energy, downtrends in defensives, and chop nearly everywhere else, it’s vital to understand which strategy is best in different market types. Know this and any market can be one you can trade.
The indexes are looking pretty dicey, and more likely to test previous lows than head towards new highs anytime soon. Additionally, with bank earnings this week, we have a potentially volatile catalyst that could cause a deeper downside move. Let’s talk about the few setups I see, and how I’m playing this week.
Whether the indices head higher or lower and which stocks could lead the way is all in the direction of key sectors in this market. We have buy and short candidates. I explain where and why in this update.
UPST has one of my favorite pre-earnings patterns, but I can’t say I’d buy the shares here. Let’s talk about how to trade it in the options market.
Setups this week were few and far between, but in good news, we have some setups appearing for next week. Let’s look at TSLA, AMD, TEAM, UPST, PANW, and more.
How does chop differ from a downtrend and how do we trade markets in chop? That as well as a NASDAQ short setup is explained in this update.
How do the EMAs help us trade chop and potential downtrend? It’s easy the GRaB and JTMulti color code it.