Today I look at the strong rally which was put to an end by the bad earnings in the after-hours of AMZN and MSFT. I look at some of the trades I made today, and some of the possible trades that could be looked at in the future. My guess is that today was a blow off top, and that we might see a few days or maybe even a week of consolidation between 927 and 960 on the SPX. In this video i also look at the SPY, GS and AMZN and talk about the market pscyhology of today’s rally.
It is also possible that no major pullback would take place. This is the bulls final chance to break the bears’ back, so why give any inch? Sideways consolidation may be what the bears will get. Look at MS, after earnings miss yesterday morning, the stock opened off its worst levels in the morning and did not look back, closing yesterday down two cents; today it took off again. I plan to take profits from my AXP and COF puts tomorrow morning while keeping my AXP short shares (I am shorting it into oblivion). I am slowly adding longer term puts and hedging all my short shares with long calls until the squeeze ends.
Trying to guess the top and entering positions unhedged in this environment can make you broke real quick.
Very true.. I am in no way short this market without a trailing stop.. and my only big position was teh short on AMZN.. that said… i think the Bulls have already gotten their victory push higher now.. and i think tomorrow will probalby be a consolidation down on low volume.. and that will probably continue for a few days .
Thanks and good luck in your new venture.
Idan, BTW, In case you didn’t know, advertising the performance of a hedge fund is illegal and/or soliciting non-accredited investors. I’d highly advise against doing so.
our PPM is only for accredited investors