I took a series of trades today which on the net reduced my long risk exposure, an adjustment I deem necessary as I hypothesize the path of the Nasdaq futures. How I see it, we may be nearing the swing high of our current intermediate trend. Since this is the first rip I have sold into since we started the process of lower highs and lows on the Nasdaq, the market is likely to continue ripping higher as the tier one momo gets rolling again.
Tier one stocks like TSLA, ANY SOLAR (Happy Earth Day), FB, DDD, NFLX, WUBA etc etc…
I own a few of those and today I bought puts on NFLX. The move was my first bearish bet on the year (another reason this may be a jack the ripper rally). It looked really good initially. I was watching the open far from my terminal, an elected move. I took a decent time of day entry into the put given the overnight gap context both here and in the Nasdaq. I expected the Nasdaq gap to fill, or at least ½ fill. It did neither and NFLX found a buyer. Have a look:
Needless to say, this put is on a tighter leash than a Chihuahua in a turtleneck.
I scaled off DDD and some YELP calls I took yesterday. The DDD was a scale at my original basis which cleanly lowers my cost basis on the position but also puts me in the precarious position of increasing my exposure somewhere lower than here before we go higher then here. I know, this stuff is like rocket science.
The YELP was actually a bit of risk aversion on my part. The trade is intact. I closed FCEL because of my whole HIGH QUALITY shtick up above and I wanted a small win. It closed strong which gives you a sense of the risk appetite out there today. I may be behaving too meek.
Just in case I was being too meek, I went out and did the dirty. I flipped to the backpages and bought some ANGI calls as a pure, fully adulterated, gamboll. Meek, pfffff…
Futures trading is going great. My systems are running better than ever.
CREE is down a cool 7% afterhours. I haven’t read why, but I suspect I already know. Prices…they’re going down down down. Good. Happy Earth day.
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