Amazing Analysis! Do you think we are going to search the wave ii right now? Correctives waves have been very weak in this bearish trend!!
Racegirl
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@Alv4rogb2022, Thank you, corrections have been extremely weak. I think we could have seen another wave ii yesterday. I made the mistake to think we only seen the (a) of wave ii and thought we would get a (b) pullback and rise to finish (c) of ii, but we dipped into new lows. I was waiting to go 3/4 in on SQQQ and SPXS, BITI calls and buy more UVXY calls, TQQQ puts, QQQ and SPY put butterflies expiring the beginning of Nov. I'm certain in this market I will get my chance with some irrelevant news that seems bullish for a day! LOL. I follow a guy BR Schultz that does market timing and has a local bottom on Oct 25th. He has hit his targets amazingly well.
My other plan is to do a search tonight on all stocks with absurd PE's, potential major upcoming ER misses to buy puts or to find sympathy stocks to short on bad ER. Last Qtr a few stocks brought down everything related when they hinted toward negative guidance. I don't think we get a capitulation without the majority of unprofitable stocks with crappy PE's coming down further, else they will most certainly capitulate one by one on any negative upcoming ER. Seeing AAPL tumble today will go along way to getting a good move down. It could be just as important to find stocks that have strength, great ER potential that are consolidating waiting for the indices to rise. Once we get to the 10-25 to 11-4 or find a good reason to finish this major wave A down we should get massive buying excitement for that Santa/election rally (wave B up)! I may keep it simple with TQQQ and some commodities like BOIL, SLV, GLD, BITO and maybe some oil and gas big dividend players, as I don't see wave B lasting too long. If the major wave C down is in play or a market decline for the end of 2023 we probably shouldn't worry about individual stock picking until next year. What are your thoughts on a market decline into 2023 and what plays are you looking into?
Alv4rogb2022
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@Racegirl, Thanks for your reply! I used to operate differents stocks but in this time I'm just operating options in Spy (Good liquidity and very profitable options) Best regards :)
Racegirl
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@Alv4rogb2022, Good point. Makes life less complicated. Also when saves your a$$ when you get quick massive price drops in individual stocks like we have seen so many stocks. Although it would have been fun to catch some of those!