Seriously when was the last time we saw the Nasdaq down 3.5% in just one trading session? This is essentially a flash crash
This seems very overdone and already close to a 5% correction in just 2 trading days
If your portfolio wasn’t down a good chunk today it just means you weren’t in the leading stocks and likely haven’t participated in the monster move off the lows over the past two months.
Looks like the infamous VIX bull "50 cent" made a return today. Another sign the VIX is about to wake up. $1.5MLN worth of the 23C with 15 dte. That is not a hedge.
$QQQ $SPY
I am telling all my dear followers/ friends.
- Dont FOMO if you missed out on this rally
- Chasing now is risking $1 to make $1
- Nasdaq, S&P 500 both showing RSI divergence
- Only 45% of S&P 500 stocks are above its 50 day
Many extended stocks will pullback by 20-30% when the 5-7% pullback come. Its a clock work.
We have had an extremely rewarding run for two straight months, and shared a tons of wins. But now is when you want to want to protect profits, dont let Greed make your trading decisions.
We will get another window of fresh opportunities, we always do.
Here's the right strategy to follow, and make note of this- you can use it every year:
- Start dropping lagging stocks
- Start reducing exposure, trim positions
- Start planning buy levels for stocks you'd like to buy
- Ride the winners you have cushion on
Have a plan, Apply your process, And manage risk.