Standing at the edge of a cliff
Stock market was whipsawing throughout Monday, and closed relatively flat again. Seems like big players are all waiting for the key events this week.
Meanwhile, lots of headwinds ahead - hot inflation, continuous interest rate hike, escalation of Russia-Ukraine war, potential recession etc.
We are standing at the edge of a cliff. A gentle push by any of the event this week, we could fall really hard, unless something or someone can pull us away from the cliff, temporarily.
From YouTube
$Tesla (TSLA.US)$ $Apple (AAPL.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $Stellar AfricaGold Inc (SPX.CA)$ $Nasdaq Composite Index (.IXIC.US)$ $NASDAQ 100 Index (.NDX.US)$ $ProShares Ultra VIX Short-Term Futures ETF (UVXY.US)$ $ProShares UltraPro Short S&P500 ETF (SPXU.US)$ $ProShares UltraPro Short QQQ ETF (SQQQ.US)$ $CBOE Volatility S&P 500 Index (.VIX.US)$ $Alphabet-A (GOOGL.US)$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Successful investing is about managing risk, not avoiding it. DYODD
Support my YouTube channel: Jay el
6010Followers
44Following
28KVisitors
Follow
456632345 : This kind of trend can't be boosted![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
It just depends on how much it can drop
Moomoobo : True to say sell off is certain ? Why not just Short it since see no chance for stocks To go high in coming weeks.
Cow Moo-ney OP Moomoobo : Relief rallies such as the one from Jun to Aug can wipe out Shorts. Likewise, the rally we had last Monday and Tuesday, coupled with the current sideway movements, can burn put options / shorts.
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Above is only an explanation / example of how bears can get trapped in a bear market. Irony ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
But generally speaking, shorting in a bear market should usually give traders some profits
Moomoobo Cow Moo-ney OP : What’s your View In holding Inverse ETF Like sqqq soxs till the market bottom? It feels like sure win
Cow Moo-ney OP Moomoobo : I don’t think there’s sure win stuff in the stock market. For inverse ETF, someone once asked me before, and I kept the explanation / example In my handphone notes haha. Please see next post below.
Cow Moo-ney OP Moomoobo : Example:
X stock is at $100, and it decreased by 5%, X stock is now $95.
Inverse ETF is priced at $20, and with X stock falling by 5%, this inverse ETF increased 5%, which gives you $21. Sounds good?
Next, X stock fell another 5%, and became $90.25
Inverse ETF went up 5%, and became $22.05. Still good?
Suddenly, X stock has a big rally in 1 week and rallied / increased by 10%. It became $99.275
Inverse ETF went down 10%, became $19.845
There you go. Overall, X stock fell from $100 to $99.275 (-0.725%); and your inverse ETF should go up, isn’t it? Instead, it fell from $20 to $19.845 (-0.775%). To make things worse, it turns out the Inverse ETF fell more than the main stock / index.
This small difference will be amplified if the volatility is high, or if you buy 2x or 3X inverse ETFs
icezzz Cow Moo-ney OP : Agree with you. I was earlier trapped in sqqq for 2 months. 60 is bearish, 55 also is bearish,…that time my buying price too high
WhyInvest : When you do a covered call for google does it show it as shorting the option?
Cow Moo-ney OP WhyInvest : I think so. I saw there is a warning message but can’t quite remember the actual message. Maybe I should take a screenshot next time.
BeBlessed : am I e only one that feel market is moving sideway in an odd manner? so diff to trade these few days. staying sideline till tmr n Thurs..
View more comments...