Tech continues to struggle in 2022. The NDX has pulled back over 10% from previous highs, led by APPL. The APPL pullback isn't surprising , immediately pulling back as it touched the 3T landmark. Historically, AAPL pulls back after hitting trillion dollar thresholds, usually about the 10% we are seeing now. However, there could be deeper market variables in play here. Yields dropped yesterday, however, this still didn't trigger a bump in the NDX. This could mean a true sell off is poised to happen and it is best to hedge your account to be ready.
At these support levels, the market has two choices. It could take gains back from the correction or if it crosses this critical support level, it will crash. It won't just be a 1-5% drop, but we could be looking at 20-50% in the coming months, especially with the Fed meeting looming January 25th . My advice is to stay nimble and be ready to hit the eject button and liquidate your entire account. Whether you day trade or have a ML portfolio you should be ready. I suggest talking to your financial advisor about an exit strategy and a panic sell all button for your account. If we start to hit market halts, you are going to want to be ready before hand , and not panic and scrambling on DOOMS Day.
CURRENT TRADES:
#AAPL: I put more covered calls out until the end of Feb . I will look to buy NDX puts as a hedge against the underlying.
#NVDA: I switched to a put credit spread as it crossed the support level. NVDA has slumped sine then so we have a nice gap of 155 puts with 140 bottoms
#DWAC : Lost steam yesterday and I sold 150/140/130/120/110 calls , as premiums were way overvalued , to create a large spread with my long calls at 81/89.
#MRNA crossed under its 175 support level . I bought 190 puts earlier this week and have it hedge with sold puts at 160. I will continue to monitor this. I also had sold calls at 210/205/200
The market just seems poised and ready to explode . I would highly recommend moving into some hedging assets such as commodities and treasury yields. Even move some of your portfolio back into cash and sit on the sidelines for a bit. Good luck out there. Stay Classy.
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