Closed one of my vertical bear spreads at a small profit and added another long single name. Net, my market position is somewhat bearish. I was quite surprised by the sharp decline in NVDA and the outperformance of YM. I read NVDA's backlog is about a year. China's apparent progress in AI will likely increase US military spending to meet perceived national security imperatives. Increasing risks of a trade war increases revenue risks of multi-national consumer related companies, which includes many DOW components. Still trying to assess recent developments, but I'm having thoughts that RTY may start outperforming YM and ES. Not confident on how NQ will perform relative to other broad indexes at this point. I plan to increase long exposure in single names and hedge market risks through intraday scalping as needed according to intraday methodology and establish some level of overnight protection by RTH close through puts or futures.
This is me trying to figure out the rules for getting funded and getting paid at most prop firms still in business Thank goodness for Topstep and TradeDay.
The general problem with shorting the stock indices is that even it goes down it's rarely a smooth ride. You'll get those strong counter-moves on the way down, so it's not easy to navigate. And I believe that's not a new phenomenon. I recall a Market Wizard who talked about shorting the DotCom bubble and kept getting stopped out on vicious counter rallies. In contrast, you can get very smooth uptrends with shallow dips. So, it's always easier to be long during an up trend than short during a down trend. Because everyone's a f**king genius in a bull market.
I'm no market wizard, but boy do I get stopped out on counter rallies... It kind of sucks being right on all 5 positions and end up with the crumbles Edit: but it beats going bankrupt, so I'll keep pussying-it-out for now
Depending on available time today, I'll likely scalp both sides of the market as I expect a trading range today.