As we drop on the 12/22/22 day, I have low risk entries I wish to record. The following below is a record of two stocks to see how things play out. Long term January we expect a low in the markets, but we are right on important levels in Amazon (AMZ) and Telsa(TSLA) — literally the people are getting margin called on TSLA and it’s all over twitter. So lets see how things play out.
IMPORTANT: Know where your wrong on these trades… 111.52 on TSLA is next support & and AMZN looks to be 79 area. I will be sizing accordingly to my comfort level.
Margin Called TSLA Buyers From 2021 Pandemic:
Unfortunately, this is not a buy and hold market. This is due to liquidity crisis and new traders only knew of 2020 after lockdowns to assume stocks only go up. It’s unfortunate for this trade, but there are many stories of this right now. Let’s see if smart money swoops in to take these shares of those liquidating due to margin call.
SPX: Quarterly What-If Bullish Test
I forgot to add on the SPX, a what-if quarterly bullish that was set from the new low in October. That may show some support into next weeks panic cycle week. Usually when heading lower into a panic, we can make new low or simply go opposite in one big move. There is also risk of panic down… but more probability for support here.
It’s all about probabilities and low risk… you can feel the fear in the markets and twiiter folks are liquidating and getting margin called on TSLA. Need to be neutral here and look for low risk opportunities. Not all lows will happen at same time in January, so the reversals help to make a low risk entry.
Updates 1/11/22
Day before CPI they finally took the market upward. Hold longs felt like forever, but glad we got the bounce and taking profits of 1/4 on Amazon and Exiting TSLA with small loss on this rally (also sold premium to gain some back). SPX rockets and long portfolio is being protected with Premium Selling for downside into February (just in case).
AMZN – Huge Rally 4 Weeks Up!!!
TSLA – Scratch, Exiting On Retest of Qtr Bear
SPX – Huge Rally, Looking To Start Protecting Downside This Week
Everything played out well except TSLA, but knew risk and took 1/4 off some of the positions to collect some profits on this big rally the day before CPI.
PROTECTING PORTFOLIO: When VIX gets to about 20, the OTM puts for protection will be fairly affordable to protect downside (if worried). Will sell some premium at the 4100 area of reversals in SPX and OTM broken wing butterflies possibly.
Long Term bullish due to war and international capital flows, but this market is very volatile so looking for opportunities. Dollar is getting attractive for longer term trade into 2028.