The sky is not falling Chicken Little
The sky is not falling Chicken Little. All that happened is you got hit on the head with an acorn. That's good! It got your attention.
Now have a plan for trading the choppy 2022 market. Hedging is an effective strategy in today's market. For example: with shares you can hedge your portfolio with PFIX, VXX, SQQQ, SRTY, OR SDOW. Or with options, you can Collar a portion of your shares by selling a covered itm call to finance an atm put on days like yesterday when there's a rapid downside overreaction to newsworthy macro-economic events. Most likely, plenty of Wallstreet veterans have been deploying the Collar strategy often since January 4th. It allows you to hold shares for +365 days, yet profit either direction the market goes, when done accurately. Be careful with a Collar, it's best done at an obvious resistance level. Otherwise, instead of profiting on the freely financed put and buying back the covered call the next day for nothing, the opposite will happen, and you'll have to pay a premium the next day to buy back the covered call contract.
There was once a big farm near a vast field, and here there lived a hen named Penny. She was great friends with everyone, and those who knew her gave her many names.
Henny-Penny the henShe was a tiny hen. The other chickens in the yard would tease her for her size. They often termed her “Chicken Little.” While Penny surprisingly loved this name, her favorite thing to be called was “Henny-Penny,” given to her by the other fowls that lived nearby. The rhyme was perfect, it was sweet, and she liked it very much.
One morning, as Henny-Penny was plucking worms in the henyard, an acorn dropped from a tree right onto her head! She had no idea what had hit her, however, and so she started shouting:
“The sky is falling! The sky is falling!”
She ran around in circles for a while, calmed herself, and then got right to waddling—she had to alert the king!
Do your own due diligence, your risk is 100% your responsibility. This is for educational and entertainment purposes only. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Good luck and happy trading friends...
*3x lucky 7s of trading*
7pt Trading compass:
Price action, entry/exit
Volume average/direction
Trend, patterns, momentum
Newsworthy current events
Revenue
Earnings
Balance sheet
7 Common mistakes:
+5% portfolio trades, capital risk management
Beware of analyst's motives
Emotions & Opinions
FOMO : bad timing, the market is ruthless, be shrewd
Lack of planning & discipline
Forgetting restraint
Obdurate repetitive errors, no adaptation
7 Important tools:
Trading View app!, Brokerage UI
Accurate indicators & settings
Wide screen monitor/s
Trading log (pencil & graph paper)
Big, organized desk
Reading books, playing chess
Sorted watch-list
Checkout my indicators:
Fibonacci VIP - volume
Fibonacci MA7 - price
pi RSI - trend momentum
TTC - trend channel
AlertiT - notification
tickerTracker - MFI Oscillator
www.tradingview.com/u/growerik/
Now have a plan for trading the choppy 2022 market. Hedging is an effective strategy in today's market. For example: with shares you can hedge your portfolio with PFIX, VXX, SQQQ, SRTY, OR SDOW. Or with options, you can Collar a portion of your shares by selling a covered itm call to finance an atm put on days like yesterday when there's a rapid downside overreaction to newsworthy macro-economic events. Most likely, plenty of Wallstreet veterans have been deploying the Collar strategy often since January 4th. It allows you to hold shares for +365 days, yet profit either direction the market goes, when done accurately. Be careful with a Collar, it's best done at an obvious resistance level. Otherwise, instead of profiting on the freely financed put and buying back the covered call the next day for nothing, the opposite will happen, and you'll have to pay a premium the next day to buy back the covered call contract.
There was once a big farm near a vast field, and here there lived a hen named Penny. She was great friends with everyone, and those who knew her gave her many names.
Henny-Penny the henShe was a tiny hen. The other chickens in the yard would tease her for her size. They often termed her “Chicken Little.” While Penny surprisingly loved this name, her favorite thing to be called was “Henny-Penny,” given to her by the other fowls that lived nearby. The rhyme was perfect, it was sweet, and she liked it very much.
One morning, as Henny-Penny was plucking worms in the henyard, an acorn dropped from a tree right onto her head! She had no idea what had hit her, however, and so she started shouting:
“The sky is falling! The sky is falling!”
She ran around in circles for a while, calmed herself, and then got right to waddling—she had to alert the king!
Do your own due diligence, your risk is 100% your responsibility. This is for educational and entertainment purposes only. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Good luck and happy trading friends...
*3x lucky 7s of trading*
7pt Trading compass:
Price action, entry/exit
Volume average/direction
Trend, patterns, momentum
Newsworthy current events
Revenue
Earnings
Balance sheet
7 Common mistakes:
+5% portfolio trades, capital risk management
Beware of analyst's motives
Emotions & Opinions
FOMO : bad timing, the market is ruthless, be shrewd
Lack of planning & discipline
Forgetting restraint
Obdurate repetitive errors, no adaptation
7 Important tools:
Trading View app!, Brokerage UI
Accurate indicators & settings
Wide screen monitor/s
Trading log (pencil & graph paper)
Big, organized desk
Reading books, playing chess
Sorted watch-list
Checkout my indicators:
Fibonacci VIP - volume
Fibonacci MA7 - price
pi RSI - trend momentum
TTC - trend channel
AlertiT - notification
tickerTracker - MFI Oscillator
www.tradingview.com/u/growerik/
Comment:
SPY $440 is a support level to not be short there today. imo
Comment:
Wednesday close was a bull trap. Most likely today close is a bear trap come Monday. lol
Comment:
Watch futures open green in 1 hour and 40 minutes. lol
Comment:
Nasdaq futures unch
Comment:
Futures -1% pre market. Which means if the market closes red today, as a trader, I must be looking for long setups.
Comment:
From a technical standpoint, SPY could tap $429 today.
Comment:
After all of that intraday movement we close at unch
Comment:
Looking forward to a gap up today.
Comment:
FOMC meeting minutes at 2pm today
Comment:
SPY back to $440 before tomorrow's 2/18 monthly options contracts expiry.
Comment:
Futures green + 1/2 - 3/4 %
Trading indicators:
www.tradingview.com/u/Options360/
www.tradingview.com/u/Options360/