A serious reminder: both SP500 and Nasdaq fell below 50-day MA
$S&P 500(.SPX)$ it is seriously fell below MA50-day line. the index is expected to go around 4300 something, where is the high point in Last August.
$NASDAQ(.IXIC)$ fell below the MA50-day line last Friday, and the rebound in the previous two trading days was suppressed by the MA50-day line, which proves the above view of continuing to be bearish.
I would like to remind that investors should hedge and protect when the indexes bounce, even reduce your positions. If you want to hedge, options are better choices.
If you hold some stocks, the best options strategy is selling covered calls for your holdings. You can choice an OTM strike price to sell calls, that probably no to be exercised when the market is weak.
You also can buy put options to hedge. However, I personally don't recommend, unless your holdings are already very profitable. There are some cost to buy puts, so it is not necessary to pay extra.
Another strategy is selling covered calls + buy puts. The cost of buy puts will be covered by selling calls. But, a lot of popular stocks have relatively high IVs, means that the premiums of selling calls may not be able to cover the cost of buying put.
If you hold a lot of technology stocks, you can actually buy QQQ puts or SQQQ as a hedge. It should be noted that SQQQ is a reverse leveraged ETF, which is only suitable for short-term only.
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Everyone keeps talking about the 50MA on SPY SPX being broken down.. okay, but how come nobody is talking about the fact the last time 50MA did get broken down, they had gapped it up $10 the very next day
Sold the SQQQ daytrade for 20.1 in the AH. Very much more short than long. But tomorrow bulls catch a bounce.
To me, it looks like we are at the neckline and could bounce for a few days if no more bad news comes out.
Even Nasdaq is negative, QQQ is green, lol!!!!! So easy free money, simply buy buy buy~
Expected Qs to be up more than this today. Looking kinda weaksauce. I dunno