Every now and again, an opportunity comes up that is so rare, I go in BIG. And on Thursday, that was the day! As soon as I saw IT, I made a LIVE EMERGENCY Broadcast to subscribers and showed them THIS trade Live! Click Here to Join the TEAM!
Here’s how it looked on Friday:
I Was Banging the Table on This one LIVE!
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I’d been scalping some trades here and there on this volatile market, but I felt it in my gut; the short-term bottom in my mind was finally in! And when these rare opportunities happen, I go BIG for a multi-day swing trade.
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I felt that Thursday was peak panic, given the crypto crash and liquidation. From there, I thought that we could build over a few days given how steep the selloff has been. On days like this, I’m like a kid in a candy store; these types of days do not come around often, which is why I’ve been protecting my neck over the last couple of months.
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I really like the scammy type of stocks such as SPCE because they’ve been beaten down so much! The junk stocks that I’ve been staying away from, I feel, could have a really big bounce, such as RIVN, for example. We had huge capitulation volume, and on Thursday, we finally saw the beginning of a reversal! $30 on RIVN would not be out of the question!
However, to be slightly safer, I wanted to stick with the Indexes, so I was looking at ARKK and QQQ to go with for a bounce. I’ve been staying away from ARKK, but this opportunity is so rare that I think is the spot to have a go on the junk!
Last Monday, I said TLT is the most important chart in the world, and I still think it is! We finally saw TLT acting like it was supposed to. Bonds are supposed to be a safe haven trade, and while stocks were getting smashed, TLT finally held up!
That gave me extra confidence coming into Thursday! Seeing VIX find resistance at 35 was an added check-in my favor! When I have this many checks in my favor, I’ll say it again I GO BIG! And subscribers got a Live Broadcast!
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I can take my shot almost anywhere on a capitulation day such as this, but I decided to go with the QQQs, to me, that’s the best way to play the market bounce! From around 290 where the QQQ’s were trading, I’m looking at 305 as my first target, and then a possible move to around 320 in the short term, sometime next week in fact, where we might find a top!
I entered the position by buying calls outright. If the trade works in my favor, I’d be looking to turn that into a call spread to manage my risk and take some off the table! I’d do this by selling the $300 or $305 calls, rather than just selling the 290’s I bought!
I’m expecting the trade to work fast and be out of it by Wednesday thus, I looked at the option 1 week past i.e., the May 27 Calls 15 days out. I bought the 285 calls for around $15.40 LIVE and on Friday they were trading above $19 already! Here’s how the QQQ’s looked on Friday.
Note: I added to this position later in the day and took a small loss on those added shares, when the QQQ’s tested lows, the rest I am holding over the weekend!
I Pounded the table on this trade and made a Breaking Alert signal for subscribers, that’s how confident I was.
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I identified Thursday as PEAK panic, and thus my stops would be below the lows of the day! We tested the lows, but they held, and then the QQQ’s continued higher!
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