I’m not in this trade, but it definitely makes me think. Volatility is extremely low, so after a strong move down, especially something like Nasdaq down 7 of 8 days and Nvidia down 7 straight, you can start picking up cheap calls as lottery tickets. You don’t need to be right often. One big winner can pay for the rest. Food for thought for myself.
We have an interesting development after today's action and close.
NYMO entered oversold territory last week but NAMO still has not.
However, today we're sitting at a potential bullish divergence in that the indices close red to extend last week's selloff but the NYMO/NAMO made slightly Higher Lows today thus creating a divergence as Nasdaq/SP500 are looking very extended on downside.
We might not be ready to bottom down here but we're seeing signs of at least a short-term technical oversold bounce in Nasdaq and S&P500. Maybe setting up for a couple days bounce here...
Qullamaggie on You Only Need One Bull Run to Make Life Changing Money
“And a bull market helps obviously. You only need a couple of bull runs if you learn the language of setups, the language of stocks. You only need a few bull runs to make life-changing money. Yeah, heck, you need one bull run to make life-changing money.”
$RKT
A volatile/aggressive idea here but definitely worth watching the next few days/weeks! Especially on pullback days.
Sitting on a ridiculously high 45% short interest!
Accumulation Volume patterns piling up recently and with the Fed gearing towards lowering rates, this should help $RKT's business.
First Target: $30
A name like AEHR this morning is a classic example of what we've seen since the start of the year, lots of aberrant volatility at ANY moment which is a symptom of a bear market characterized by a lack of bids from institutions who aren't stepping to the plate with much of an appetite for risk.
Some might say the solution is to hold through the bigger declines and widen stops, but that would do nothing but add risk, and that is only a solution in hindsight.
Bear markets are supposed to wear investors out and make them throw in the towel. That's a good thing because that is what ultimately creates an effective bottom.
In the past, you may have heard me say "while you do nothing, the lesser-skilled and undisciplined are laying the groundwork for your success." Your goal in a bear market is not to make money, but rather to survive by staying small and mostly sidelined while others are getting worn out... not be the one getting worn out!
Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with great talent...Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent.
-Calvin Coolidge
The faster the tightening cycle, the more suppressive it is on stock prices. The Fed has hiked rates by 3.75 percentage points in just nine months; the fastest tightening since 1980. Based on recent language from Powell, risk remains high.
We've been talking about this for years at MPA. Many naively think that volatility is good for directional trading and that is because they don't understand the difference between volatility & alpha. Volatility is two directional movement, where alpha is excess return...