70% chance, moves down to
400-500 area.
Timeline: 2 weeks to 2 months
Major date: 4/26 Earning Report
Plan: already bought some puts
with expiration date in ~3 months.
Analysis: consolidation at major support level.
This level is also close to 200 day moving average.
Price has been trading above 200DMA since last August.
FA: clean energy, inflation.
Plan: Already bought 1st position @~2.5.
Target: 2.7,3.0,3.5
SPX is entering overbought territory. Price moves more like parabolic now. QQQ seems to make a double top. Stimulus and money printing may slow down and Biden's infrastructure plan has already been priced in.
Short term price pull back trade idea: Nasdaq 100 is forming a double top. Strong likelihood for a pull back tomorrow morning.
If you buy NQ puts, the potential reward/risk can be between 5X and 20X depending on the strike price and date you choose.
Right now, puts are dirty cheap.
RMO shows buying signal from both TA and FA analysis. Buy a small position at $10.2, risk 10.2-7.5=$2.7; potential return 18-38; multiple reward to risk ratios.