Comments on: Stock Market & Financial Sector Analysis 5-10-23 https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/ Stock Trading, Investing & Market Analysis Thu, 11 May 2023 15:41:10 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: trade0039 https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27586 Thu, 11 May 2023 15:41:10 +0000 https://rightsideofthechart.com/?p=211447#comment-27586 META AMZN AND GOOGL breaking out!!!

]]> By: trade0039 https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27585 Thu, 11 May 2023 02:39:24 +0000 https://rightsideofthechart.com/?p=211447#comment-27585 Chart attached below..

]]> By: trade0039 https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27584 Thu, 11 May 2023 02:38:55 +0000 https://rightsideofthechart.com/?p=211447#comment-27584 Guys check out the attached chart of Nasdaq futures which is in Daily TF.

We can see the Bearish Divergence which looks a lot like its appearing right now. As you can see in the chart, the Nasdaq kept forming new Divergence High and kept rallying.

Eventually. market dropped but it took another 28 days, 19 days and 23 days respectively to get the drop that bears was waiting for.

My point is as a technical traders, we shouldn’t rely on social sentiments or a news and on top of that we shouldn’t just rely on Divergence bcoz look and the stocks such as MSFT, AAPL, META, SNOW, AMD and NVDA. They are rallying on every new divergence high.

After forming new Div High:-
Meta rallied 22%
AAPL rallied 11.5%
MSFT rallied 9%
GOOGL up 5%
NVDA up 26% and
AMD up 13.6%

We cannot look only the bright side. What if QQQ rallies another 15% and forms new div high? I am long FNGD which is the inverse of FNGU. If QQQ rallies another 5%, I could be down another 20%.

I know I shouldn’t be holding 3X leverage etf during this choppy market but that is only on the hindsight because how would you know when the market will drop sharply?

]]> By: Jeff Vandenburgh https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27583 Thu, 11 May 2023 01:54:39 +0000 https://rightsideofthechart.com/?p=211447#comment-27583 In reply to Jeff Vandenburgh.

And then I’ll trade around those longer term trades with long/short stock or futures, as well as selling premium in nearer dated expectations, as well.

]]> By: Jeff Vandenburgh https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27582 Thu, 11 May 2023 01:51:55 +0000 https://rightsideofthechart.com/?p=211447#comment-27582 All the negative talk about options. Come on, folks. There’s no better way to hold a position for several months, or even for a year or two, than with option spreads. If options aren’t your thing, it’s probably because you never took the time to learn how to trade them. Lesson one, sell premium against the premium you’re buying. Try to take the extrinsic value out of the trade with short options sold against your long options. And just like any trade, only risk what you’re willing to lose. And before you go buying a 3X leveraged ETF, ask yourself the question, how does this ETF work? And why do all leveraged ETF’s severely underperform in the long run? The answer probably has something to do with the fact that the ETF, in addition to being long or short the underlying, is also long options; options that decay when the underlying doesn’t move aggressively in an advantageous direction.
For me, the only way I can maintain the RSOTC bearish positions in this bullish market is by owning spreads that are more than 3 months into the future.

]]> By: HermonMunster https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27581 Thu, 11 May 2023 01:24:45 +0000 https://rightsideofthechart.com/?p=211447#comment-27581 Hi Traders,
options are difficult, you have to be right in direction and time. However, there’s nothing that can give the great returns when you get it right.

I purchased a call expiring today in SPY. I played the chart well and bought close to the low. my best trade of the year. 230%gain in a few hours. Could have been 450% gain but I was stopped out. It’s hard to just play the chart when you’re up so much and the chart is breaking down

https://i.imgur.com/htU7tbl.jpg

https://i.imgur.com/hPv7gM8.jpg

]]> By: trade0039 https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27580 Thu, 11 May 2023 00:59:22 +0000 https://rightsideofthechart.com/?p=211447#comment-27580 If QQQ rallies tomorrow more than 1% tomorrow, I’m seriously out on my short position in FNGD! in just 5 trading days, I’m down 13% waiting for the big down arrow to play out.

]]> By: Jeff Vandenburgh https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27577 Wed, 10 May 2023 20:14:45 +0000 https://rightsideofthechart.com/?p=211447#comment-27577 Interesting to note that today while the indexes were plunging into negative territory, after giving back all of the CPI gains, HYG stayed positive and did not fill the overnight CPI-induced gap. This is the kind of bullish divergence that can help give traders the confidence to buy the dips.

]]> By: Mikeflegel https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27576 Wed, 10 May 2023 19:50:37 +0000 https://rightsideofthechart.com/?p=211447#comment-27576 Randy I just cannot get a short position to stay put. How do you keep from getting stopped out yet keep your loss Is small

]]> By: trade0039 https://rightsideofthechart.com/stock-market-financial-sector-analysis-5-10-23/#comment-27575 Wed, 10 May 2023 19:22:26 +0000 https://rightsideofthechart.com/?p=211447#comment-27575 As usual Market back up EOD!

Tomorrow PPI announcement and another day for RALLY…

Randy, can you please do the technical analysis of the holdings of FNGU etf?

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