Sellers are hoping for a rebound, so as to reduce loses. Buyers ain’t interested, until the virus news improves.

It’s currently a stalemate, but I predict the sellers will eventually give up the ghost, and capitulate.

Also, don’t forget the orange elephant in the room. He ain’t gonna let the market fall, without trying every trick up his sleeve.

Look at UWT — oil popped and it didn’t budge

Fed money printing:

https://brrr.money/

!!!

– you have to pay for premium (reducing profits)
– spreads are hardly any good unless you have a crystal ball and can time the future at perfection
– the spreads are pretty hideous too
– the prices fluctuate based on things other than the underlying
– go calculate a stop order…
It’s messy

As one does in these situations, I bought some LK, thx for the heads up :)

I believe he is saying the overall trend is downward. It wont get there in one move. Its gonna bounce around. Trade the bounces as you see fit.

You can see the completed trades above under the menu “Trade Ideas”

New member here. I been using Randy’s PT for put debit spreads this last week for short term swing trades. I buy exp 2 weeks out. (Ex. Today I bought QQQ 173/172p 4/17) Then i sell once it gets around that area. Its been working so far. Mainly because Randy’s PT have been pretty spot on.

never mind I found it!

Yeah. But some of Randy’s trades don’t lend themselves well to options trading due to the time variable. We might hit Randy’s Target, but you can lose profits to theta or just have your options expire worthless.

Your account, your risk.

Is risk/reward ratio still good to add additional shorts at this level (before the next sell signal)?

Certainly a whipsaw at the open today but technically, SPY hasn’t broken down on that 30-minute chart yet as the bottom of that support zone, 244.93, was only taken out on a brief spike & snapback above that level at the open with the 30-minute candlestick finalizing (printing a close) back above that support level & the next candle still in progress but with SPY still trading back above 244.93.

When trading off a particular time frame, intra-period (e.g.- daily, 60-minute, etc.) moves above & below resistance can often trigger a breakout although the buy or sell signal is confirmed once you get a candlestick (for that time period) close above or below the support or resistance level. So far, SPY has defended the bottom of that trading range at 244.93 on a 30-min closing basis.

Thanks for taking the time to respond to this Randy! Your insight is greatly appreciated. BTW, the prospectus called out COVID and the oil market as reasons for the prospectus update.?

It’s going to be a fun day.

Cheers!!!

While I’m not going to spin that statement from ProShares as untrue or even unlikely, I will say it is a boiler-plate disclosure that they are required to put in the prospectus & to the best of my recollection, it has also been in there & similar CYA disclosures are likely found in the prospectus of most or all ETFs, ETNs & mutual funds. Typically, ETNs carry a higher risk of loss (not including any losses of the underlying securities, index or sector it is tracking) than ETFs & leverage ETFs entail more risk than non-leveraged ETFs.

Every single stock & ETF carries risk at all points in time although those risks rise substantially during when the financial system & capital markets are at risk, such as now. Here’s my reply to @weatherman’s trading room post regarding the 85% plunge in LK today on news of fraud:

Ouch. I recently made reference to Uncle Warren’s famous quote: “You only learn who has been swimming naked when the tide goes out…” from back in 2007 during the last financial crisis. Basically, a crash in the stock market, credit market, & financial system will start to expose more & more corporate fraud and business with unsound business models or financials that were buzzing along fine when the capital markets were awash with excessive amounts of capital at artificially low rates. More LK’s likely to come. (end reply).

Bottom line: Trading & investing in this market entails considerable more risk than it did 3 months ago or 3 years ago. The potential for gains for flexible traders adept at swing trading a volatile & rapidly changing market like this are huge but so are the risk for those that don’t properly manage their risk via position diversification & total exposure (position sizing), asset allocation, stop/loss management, and not being married to any convictions that the market or a particular stock, sector, commodity, etc.. must do this or that.

One way to minimize risk is to avoid holding positions in stocks from smaller companies or those in particular industries that might run a higher risk of fraud or a blow-up from using a fair amount of leverage. Index & sector ETFs that don’t use excessive leverage provide diversification among dozens or even hundreds of different companies & for the most part, are a safer bet that holding individual stocks of lesser-known companies that might be cooking the books.

We want those 30 min closing candles below the line