BUY SnP PUTS. Stocks are set to crash and burn. Next stop 1800 on the S&P
Why do you think the S&P is going to fall 40%? What are some fundamental reasons for such a severe drop?
Very overextended and WW3 . . . . .FILLED 1 S&P Sep 2600 Put @ 3.90
Right about the time you made that post, the DOW and equities in general spiked. Weird Huh? If I send u some money, could you make similar posts every weekday? Just give me a few minutes notice. Let's negotiate. I'm serious :-)
2600 4.45 4.45 3.85 3.95B 3.95 -.70 180 4.65 929 68112
according to the settlement sheet, the put I bought for 3.90 had a low of 3.85 and settled at 3.95
Sorry I did not by the low tick of the day for you.
stock market is very over extended and is at a point above the 200 dma that is typically for dramatic declines. We are very close to a major set back in stocks and not matter what happens in the middle east. Volume on this rally has been heavier in down stocks then up stocks. not a set up for more advancements. Perhaps one more high with the fed cutting interest rates but by Thursday the decline will be set. If we go higher I will buy one more put and then watch and wait.
Volatility will do that to options. Didn't check but I'm sure calls appreciated even better. But as the market advances and theta draws down......
Looks like I NAILED the TOP, but have no fears, there is still plenty of time to short this over bought bubble. We may even have a retest of the highs if the fed cuts 1/2 point, but this IS a TOP. Intermediate Top. Not the Final Top of the Bull Market but enough of a top to SHORT and make $$$$$$$$$
Still have my S&P put. This market has much more to drop. No thoughts in my head of covering.
Keep us posted.
Looking at the weekly chart of the SnP you can see that it closed at 2932.05 and this is just below the 13 EMA. When prices close a fraction below a support line, this has the potential of the greatest falls since there is no retracement back to the previous support line. While it is possible that we could rebound Monday and this was a fake out, as a trader all one can do is trade with the prices and additionally since I am in the money so much, a rebound Monday will not put me underwater. I am short and glad that I am and looking at this chart, one can only imagine what is going to happen Monday. You know your addicted to trading when you wish it was not Saturday tomorrow cause the markets are closed and you want to find out what happens and trade some more. . . . .
OBVIOUSLY we also have a Divergence on the MACD histogram as prices made a new high and the MACD Hist did not.
Your timing was certainly fortuitous. Had the Fed cut more, or Powell given a more dovish post mortem. and/or Trump not escalated the trade war, the outcome would likely have been different.
That being said, you've been right so far.
Bear in mind, the underlying remains fairly strong and equities are oversold.
sold my put for 19.00. I still see more downside, but I bought it for 3.90 and sold it for 19.00 so it is done. If I had a futures contract I would have hung in there as we will see 1800 before a new high is made but that 1800 will happen in 2020 and my option was too short dated for me to hang in for that target.
good trade Richard! I also see some more down side. I sold covered calls on my qqq
China “appears to have decided that, given the increasingly dim prospects of a trade deal with the US, the boost to China’s export sector from currency depreciation is worth attracting the ire of the Trump,” Julian Evans-Pritchard, senior China economist at Capital Economics, wrote in a note. “The fact that they have now stopped defending 7.00 against the dollar suggests that they have all but abandoned hopes for a trade deal with the US.
Along with the currency move, China retaliated by suspending the purchases of U.S. agricultural products and threatened to slap tariffs on the farm goods purchased after Aug. 3, according to state media and other reports.
Trump announced last week the U.S. would impose a 10% tariff on $300 billion worth of Chinese imports. The tariff will take effect on Sept. 1. Trump’s announcement came after Chinese and U.S. officials discussed trade earlier last week as the two countries tried to restart talks.
U.S. stocks slid after a spate of international central banks cut interest rates, signaling a synchronous tilt toward easier monetary policy as officials sounded the alarms on the impact of ongoing trade tensions to global growth.
Haven assets including U.S. Treasurys and precious metal prices continued to gap higher following a rout in risk assets earlier this week. Gold prices breached the $1,500 per ounce level for the first time since 2013. German bond yields slid further into negative territory, with Germany’s yield curve flattening the most since the financial crisis Wednesday morning.
Stock Market decline is looking perfect for my target of 1800,