Us100 Could see 5% more downside
Updated
Hey all,
So today I have bought some PUT Warrants against the US100, After this strong week of gains it seems to be topping if you go down to the 1 Hour timeframe you will see a big divergence indicating a top is coming. This daily chart shows you my target which is just a strong trendline that's been active for over a year now and every time so far we have had a correction that hit it we had a strong bounce then another sell off back to the line before resuming the uptrend. There are many market factors that could be the reason to why this will happen this time ( Inflation fears, Bad earnings, China economy) but with how strong we have been bulling into earnings for example Tesla I wouldn't be surprised if its a Buy the Rumor Sell the Fact Scenario that starts us off. Only chart that makes me nervous is Apple earnings still are a week away and could bull some more dragging the US100 up so I'll be watching that.
So today I have bought some PUT Warrants against the US100, After this strong week of gains it seems to be topping if you go down to the 1 Hour timeframe you will see a big divergence indicating a top is coming. This daily chart shows you my target which is just a strong trendline that's been active for over a year now and every time so far we have had a correction that hit it we had a strong bounce then another sell off back to the line before resuming the uptrend. There are many market factors that could be the reason to why this will happen this time ( Inflation fears, Bad earnings, China economy) but with how strong we have been bulling into earnings for example Tesla I wouldn't be surprised if its a Buy the Rumor Sell the Fact Scenario that starts us off. Only chart that makes me nervous is Apple earnings still are a week away and could bull some more dragging the US100 up so I'll be watching that.
Note
Tesla Options Gamma squeeze on the surprise Hertz announcement and the bull into earning for Apple and amazon killed me in this trade. Although my thesis i feel still stands and have entered another Put Warrant position against the US100 this time pushing the Stoploss a little further out. Good learning experience I feel I should have waiting Until last night or today the first time round. A week to early and 100 points to shy stoploss.
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