Note the consolidation zones along the S/R line reaching back coincide with the Fibo retracement 0.618 level; bull/bear battle zones, likely rejection zone. Overbought condition, indicators pegged, but can always squeak higher ofc.
A move lower is likely imminent, Whether it proves to be a higher low and price returns to lofty valuation, or a real correction, TBD.
Thursday's nutty wild bull price action feels like a blowoff top, confirm it Friday IMO. Fade the Gap didn't play on 9/23, perhaps it will 9/24? Looks like a Pumpndump forming atm.
Watch for short covering in Power Hour Friday! Trade with caution! GLTA!
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Opened 25 Oct VCS short 353 call, long the 486s, a $15 spread for net credit $2.02. These are 100 pips above market, 31 days to exp.
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Fade the gap play worked today clipped 400 bucks off the fill. Chump change c/w drawdown from shorting too soon!
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Waiting for PM trade or EOD to get into bear spreads. Fair chance of a pump off the AM weakness IMO
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Closed the VCS on weakness and re-entered in 29 Oct 454/470 calls for net credit $2.10, ten spreads
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Added five spreads at $2.15 cr, open order for five more at $2.20 if I can get it
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Opening VCS on VIX, long the Oct 18 calls/short 28s. Ten spreads. Also open 500 covered calls on UVXY, short the $26 weekly calls.
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Shorted the EOD rally. In every major index either bear spreads or bear shares. Going all in next week. Friday's price action confirms the underlying weakness IMO: Reaction rally rejected from TL, NOT a new bull run!
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Sorry for late updatez. Closed shorts on the gap and reentered on the fill. Short IWM, QQQ in Oct puts and shorted the 29 Oct 452 calls on SPY.
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Strong R at 4450 rejection zone, expect last really attempt at Triple top with a WEAK THIRD to form Crown, this pattern repeats so typically at tops, go back and see it many times, then it will Crack!
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Closed puts early on for nice surprise and rolled into calls, made bank 3x on the bounces intraday, bought puts one more time midday, closed all out and watched in amazement as the EOD rally went back to LOTD.
I have learned NOT to try and buy those.... baby bounce Weds and lower again soon IMO.
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Still bearish. Would NOT buy this dip. Likely much lower soon IMO. Impossible to call a bottom, just watch, wait, dont get killed. Panic selling start soon when new players and weak hands realize they losing on new positions, the dump will be fierce!
how low it will go depends on how many players panic, unknowable.
Trade closed: target reached
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ALthough lower is still possible, looks like we formed a lower high on double bottom. Closing all out, could get a firm bounce. Very chancy atm!
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BUYING CALLS
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Closed this when it got wiggly and saw the crown form in late trade. Bearish as all get out. Not bouncing yet, lower soon IMO, we got a flagppole with breakout from bottom of a pennant.
I liked your content here but you're nuts buying calls with this bearishness. But who knows you might be right, looks like gambling though.
Mihai_Iacob
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Thanks for sharing
maxaus
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We're going up and up some more ))) the reason being: Biden's sputtering domestic agenda -- a $1.2 trillion infrastructure plan and a $3.5 trillion spending plan
maxaus
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@maxaus, going long with SL just below this week's low.
DaddySawbucks
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@maxaus, Probly a good bet, bounce to TL and close the gap, then sell again IMO
maxaus
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@DaddySawbucks, it looks like we're forming a pennant here with hitting its upper side at around 4450. Sideways within narrowing pennant for next couple of weeks IMO.
maxaus
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@DaddySawbucks, Yep, that sounds about right. Gap will close at 4442.