It has been 9 weeks since QQQ tapped the 21-ema on the weekly chart. The last time that happened? December 2021. Tech is mega-stretched to the upside, and mean-reversion is on the menu.
$330 puts expiring in two weeks
$310/$290 put debit spread expiring in September.
$345 stop loss. Hedge with short-term calls as needed.
Hi all, welcome back to a new morning :) Without going into the nitty-gritty, NQ is holding a major zone right now (simplified to the most recent area) and the market has extended almost 300 points within a day. I am expecting two scenarios at the opening area which will define how I act for the remainder of the day:
Scenario 1: Mean reversion long - Bulls...
Using my Technical Analysis Kit, I identified a profitable opportunity based on the confluence of several factors: potential stopping volume, mean reversion, and three signals from the RO Flash script. This resulted in a modest but satisfying ~2.75% gain. As I am gradually resuming my trading activities, I am relying on my intuition and the expertise I have...
Thinking that the war in Ukraine would cause the price of natural gas to surge higher over the winter, many traders got stuck on the wrong side of a trade. Natural gas futures have plunged more than 90% over the winter.
In this video, I explain that regression analysis was warning that a significant price decline was imminent in late 2022, and I explain that it...
Hi traders,
I'm sure everyone who watches markets has made some kind of chart like this over the past six months, but I thought I'd share for those of us more comfortable with reading price action rather than economic reports or the news (obviously one needs both to be a truly excellent trader or analyst).
I marked off with the pink vertical lines every low...
A lot of traders I talk to are afraid of trading volatility products.
When I watch trading shows even the professionals are afraid of trading the VIX because they don't understand it.
I find that funny because as someone who has experience trading all asset classes and analyzing a dozen casino games I find the VIX to be the most mean-reverting asset.
The more an...
Tesla is stuck between a rock and a hard place, and the path going forward is likely mean reversion, price gravitating around the monthly mode area that sits below, with very well defined upper and lower barriers keeping price range bound for a while. Current short term setup is a short if price breaks into new lows on Monday pretty much, and we can already figure...
This is a daily chart of the #US30 taken this morning. It's important to note that today ties the longest run of the year without the daily bar testing the 20 day moving average.
Back in August, it ran away for 24 days, ultimately to come down aggressively on that day to touch/retest the average. Today, we're extended yet again by 24 days and traders are aware...
Market has been rallying but today seemed suspect and pop in VIX implies smart money possibly hedging under the hood.
Time to start looking for hedges / short opportunities , whether we get a large move down or just a pullback before going higher, IMO in the near term we see some selling.
Costco is at trend line resistance and therefore I see it as a good hedge/...
Order BUY NIO NYSE Stop 10.19 LMT 10.19 will be automatically canceled at 20230401 01:00:00 EST
NIO daily bullish end of wave 5 C bottom of MRC. That may be it for NIO.
Fundamental (reason why I am putting this stock in my watchlist): Their EPS growth and Revenue Grotwh (between Q3 2021 to Q3 is 109% and 84% respectively. ROE is 33%. This is what I define as a potential growth stocks.
Technical : It is correcting after its 6 day rally. It will be interesting if it reverts back to the mean (50,100 and 200 EMA). it is testing the...
