ES, RTY, and NQ indicator's aren't lining up very well, NQ is almost overbought on RSI while ES is oversold on MFI.
Just really weird whipsaw trading with indicators going all over the place. Stocks going from bullish to bearish to bullish all in one day, lol.
All cash, bearish about PPI numbers. Gonna stay cash though and not play the news. Might buy the dip if the market gaps down, will decide in the morning. I would have been more inclined to buy the gap if it had finished at the bottom today. Tough market to trade.
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With indicators going every which way, this isn't really a good market to trade. Probably not posting anything the rest of the week unless I see something tradable.
Even when I'm right, the market is whipsawing so fast I think I'm trapping my followers. It's a bad idea to post day trades because people don't read every post real time, even reading a post 30 minutes late can kill your trade.
I'm bearish for the open tomorrow because of PPI, not sure about anything after that. We really need all of the indicators to go overbought or oversold AT THE SAME TIME, lol.
Thanks. You're confirming my concerns. That was a fast pump. 4200 is the ceiling, so I suppose there could be more upside, but can't really tell since RSI and MFI are divergent on the futures.
hungry_hippo
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@BoomerMo, yeah, very confusing market and dangerous to trade with options. You can get wiped out pretty quickly.
BoomerMo
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@hungry_hippo, Yeah, when I first started looking at actively trading at the start of the crash, I was more scared of putting $10-20k into shares than $150-250 on an option. Now I find myself wondering why I often still (emotionally) look at trades this way. Of the money I've lost on bad trades in the past 1.5 years, a majority of it is loss on poor options trading. Somehow the two still feel different to me, even though the difference between losing $150 on an option, and $150 on a 10k trade are exactly the same, only with the share trade, you don't have premiums and time robbing you of profits.
Options make you feel so smart when you win because the "return" is compared against the cost of the option. So you're making 50%, 75%, 100% returns. With a 10k investment, you're making 0.5%, 1%, 1.5%, but the total dollar profit can be the same. It's funny. I know this is obvious stuff to a seasoned trader like yourself, but to us newbies, its still a bit like magic. (When I say newbies like me, I just mean to active trading. I've been an investor for 30 years or more now.)
hungry_hippo
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@BoomerMo, I trade 100k blocks with my retirement account, but same boat here.... I've made money in my retirement account this year, but aside from January, my options account has been going sideways, mostly because I've been doing small kicks and giggles trades the past couple of months.
There just hasn't been any options trades where I'd want to throw thousands at it.
m3t4lz0n3
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Good quality content as always. 🫡
Im shorting at this top and then will long friday bell