Yeah it was extra brutal today, they kept trapping longs after every drop, than just running it right back to that area and selling into any new buyers. I got lucky in catching that short covering rally here. .
I am short through puts. Maybe not accurate to say I'm short? But I will profit if NVDA down from here. Closed my SPX calls for 91% loss. Easy come. Easy go. If I thought there any chance of monster rally tomorrow. I'd have kept them. What I like about options is. defined loss from start. And I know it could all go down the potty. Closed SPY long shares at +4 Short SPY $468.94 Also bought SPY 14 January 22 463 puts. Second day in row with no long signals. Only long yesterday SARK. an inverse fund. Not looking bully right now.
I have many NVDA calls, all deep in the money now. I will buy more. NVDA is not the stock to short. On the other hand, probably travel and entertainment sectors are good for shorting. Earnings are rolling in soon.
This is a great long trap on all indices, but particularly NQ. All those buyers from 15605-15987.25 underwater and primed to be squeezed out. I have monthly NQ support at 15154 but we already bounced off of that last week, generally doesn't hold as well on 2nd hit. Bearish bias tomorrow unless we start trading above 15605.00, than I'll move back to slightly bearish bias, but still be open to taking long setups.
It maybe for the night. Maybe? I have made good dollars holding long NVDA. But stocks go up. also they go down. sometimes.