The small cap underperformane today is quite obvious and widely-discussed, though I suspect we will not know until at least early next week if it amounts to a sign that the market bounce off this week’s lows is doomed.
Something more tangible, however, would be if and when to test out a biotech short.
On the daily chart for the sector ETF, below, a retest of the broken support trendline may be just the spot to do so, using BIS as the inverse ETF.
One scenario I can see if a Monday morning gap higher in the market which then reverses the entire rally
For now, I am laying off the short side headed into the weekend.
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Chess I went Short via Put option on
AAPL: Earnings Gap down (Bet)
SPLK
IWM
CZR
Longs are JAKK
ANFI
UNG
Good man, Danny. Like the book.
At first, I would say your AAPL puts would be a good trade, but Apple has high dividends with plenty of cash to horde around for the Apple geeks to innovate. I wouldn’t expect a huge decline. God luck though.
Kudos for being spot on in this whirlwind! Is the news letter different from the Trading Room? I’d like to sign up for the chat I already am a member of AHWOA.
Members of 12631 receive the WSS each weekend at no additional cost, but you can sub to WSS separately if desired.
I cancel the WSS and just subscribe to 12631
That works, too. Thank you, Danny.
I’m just leaving my hedges on for the weekend. Agree chess … it’s looking like the market will stay interesting for a while longer.