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Hedge

Hard assets are the way forwardWith the money printer going BRRRR (costing $4T from the fed) causing stock prices to be inflated, investors and money managers in the stock market may soon take profits into hard assets that aren't necessarily tied to the value of the dollar, like housing, cryptocurrencies, gold, etc. in order to preserve the wealth that may otherwise be lost due to continued inflation. This could explain why BlackRock and Palantir have bought Real Estate and Gold at large respectively throughout the year. Note, cryptocurrencies are at risk of going down with equities if the market doesn't consider it as a commodity. The coming months maybe even weeks will reveal as to whether it matches or disassociates correlation with the stock market as the SPX/CPIAUCSL chart reaches its 1.618 fib extension from the 2000 dot com highs to the 2008 lows, and the Dow theory continues to play out. Perhaps all this money printing was done to usher in a Great Reset of economics; to meet the expected productivity from the innovations of the 4th industrial revolution? offset panic from retirees? encourage the youth to invest and adopt crypto as an inflation hedge? Will a crash come? Maybe, maybe not, but I think if it were to happen, the $ may be transferred to blockchain tech as it serves as a commodity with major innovative growth potential to digitize most businesses and services to make them ESG compliant . Overall, stagflation will likely occur in response to the fed attempting to delay the retirement and debt crisis as long as possible, ongoing high unemployment (workers incentivized to collect UI as it pays more than min. wage), and possible future low economic growth (as a result of goods being unable to be transported due to COVID-19). One could argue that deflation is more likely to occur if innovations in blockchain technology spread outside of Finance and into other areas such as supply chain automation, insurance, identity, etc, allowing productivity to match or even outpace the supply of money. But such progress has yet to have been either made or discovered depending on the respective industry, let alone hesitancy of adoption due to BTC's perceived low ESG score.
SP:SPGSCILong
by linebands
$HMY Inflation Rebound*Before reading the information in this please understand the risks associated with both the stock market and investing as a whole. ALWAYS do your own research; invest with conviction, rather than emotion.* *Please understand I am in no way a professional and offering investment advice, all ideas shared are simply opinion.* * Inflation is a crook, we've all seen it on the shelves. The notorious inflation hedge Gold is looking to run, and Harmony Gold Mining Company ($HMY) looks primed and ready to make a move on the charts. It currently sits at a support in the $3 range, and could easily make a move depending on inflation news. Two reports are being given this week: US Consumer Price Report (Tue. September 14) & the U.S. Retail Sales Report (Thu. September 16). These two key data collections could show increased consumer prices and lower spending; the former directly affecting the latter. Higher prices for retail goods, among other supply chain issues are a silent killer in the US economy. Regardless of these two pieces of information being released this week, with the Delta variant of COVID-19 looming over the coming Fall and Winter, Gold is a solid investment hedge against the US market. ENTRY: $3.30 STOP LOSS: $2.50 TP1: $5.75 TP2: $6.50 TP3: $7.50
NYSE:HMYLong
by tradebuckets
Update to ABNB Trade Setup: Weekly CollarUpdate to ABNB Trade Setup: This trade popped nicely today after several days of consolidation. I am expecting a small pullback sometime this week and so set up the following weekly collar: 10 SEP 21 $170/$157.50 for $0.35 credit: Sold to Open the 10 SEP 21 $170 Call Bought to Open the 10 SEP 21 $157.50 Put Next week if the trade closes between that collar I will bump it up again. If it closes below the put strike I lock in a small win and if it closes above the call strike I lock in 1.69 R (1.69 x my initial risk). For details on the original trade setup:
NASDAQ:ABNBLong
by Dustin_D_RLT
What is Hedging ?🔵 Hedging Investment banks and other institutions use call options as hedging instruments. Just like insurance, hedging with an option opposite your position helps to limit the amount of losses on the underlying instrument should an unforeseen event occur. Call options can be bought and used to hedge short stock portfolios, or sold to hedge against a pullback in long stock portfolios. When an asset reaches a higher price, it usually attracts more attention from traders and investors, which pushes the market price even higher. This continues until a large number of sellers enter the market – for example, when an unforeseen event causes them to rethink the asset’s price. Once enough sellers are in the market, the momentum changes direction and will force an asset’s price lower. ━━━━━━━━━━
NSE:NIFTYEducation
by dsp21486
2
Hedging with short JPMWhen the market reached a (new) All Time High earlier today I wanted to get some short Delta in my positions. I learned my lesson during the 'recent unpleasantness' bottom of 7/19 that being all net long puts one at risk of volatility in a portfolio... even if the positions themselves individually remain strong and profitable. This morning's volatility setup a good short entry on NYSE:JPM that by looking at futures this evening should hedge against tomorrow's potential downside.
NYSE:JPMShort
by norok
1
SPY Crash - Keep your eyes on the Major MarketsWanted to ensure everyone was still keeping an eye on the SPY, and other futures. The SPY is looking a little tired out, possibly producing a head&shoulders formation on the daily. If so, we could be at the beginning of the correction on the head formation, which will lead us a couple weeks in to July, then the right shoulder would form over the following months. This would lead to a full correction in Q4 '20 to Q1 '21. Alwasy happy to hear your thoughts, or if there was something I missed, please let me know. More than happy to learn something new.
AMEX:SPYShort
by ReadyFor401k
4
SPY - Still see a Market Correction in the near future.Made this video to look at what I'm seeing in the market that has me a little on edge. Looking at the Weekly and Daily chart of the S&P. We can't continue to push the limits like we have for the past 5 years. Something has to give soon. The RSI is showing a broadening down trend for the past few years, with an uptrend support cutting through. This is creating a Pennant in the higher range of the RSI and it's not looking favorable to the upside, once the breakout occurs. The MACD confirms the uneasiness in the market, as it's drawing out to a torn flag in the wind. This shows a dispute in the market. BASL3, which may take affect on June 28th, could push price up, as this has a high potential to drive precious metals up. Only if the Dollar stays flat or dips a little. Keep a close eye on the markets movement over the coming Months. I expect this week to be a red week for the S&P. As always, hedge wisely and keep some money as buying power. It's always good to know that you're prepared for the rainy day.
AMEX:SPYShort
by ReadyFor401k
9
NEM : RESET / POSITION TRADE / HEDGENewmont Mining just came off a record quarter in Q3 with free cash flow of ~$1.3 billion, and increased its dividend by 60% to $1.60 per share annually. Despite these bullish developments, the stock has slumped with the rest of the sector, down more than 20% from its August highs. This correction has left the stock trading below 13x FY2021 annual EPS estimates, with a dividend that's 70% higher than that of the S&P 500. Therefore, if we see any further weakness below $57.25, I would view this as a low-risk buying opportunity for long-term investors looking for steady free cash flow and yield. seekingalpha.com
NYSE:NEMLong
by TradingMavericks
GDX : RESET / POSITION TRADE / HEDGEDuring the last three-month trading period, the VanEck Vectors Gold Miners ETF (GDX) has generated net inflows of 731.35 million. More importantly, we can see that the greatest selling pressures emerged after the Pfizer vaccine news was released on November 9th. This suggests that the market is simply undergoing a temporary reaction to a news event and that further downside in GDX seems unlikely because any additional vaccine announcements would probably do little to change the underlying environment. Moving out to an even longer-term view, we can see further evidence that these assertions are accurate because the VanEck Vectors Gold Miners ETF has actually generated net inflows of 2.37 billion during the last three years. All together, these trend divergences tell us that investors might have an opportunity to profit from recent paradigm shifts in the precious metals markets. While this short-term enthusiasm might be moderately favorable for U.S. stock benchmarks into the end of 2020, we think that the prospects for economic deterioration during the first-quarter period of 2021 might be enough to send investors right back into safe-haven assets. Ultimately, the VanEck Vectors Gold Miners ETF provides an alternative strategy for investors that are interested in moving deeper into the precious metals sector and its expense ratio of 0.52% remains near the middle of the range for the category as a whole. SOURCE : INCOME GENERATOR, THE INCOME MACHINE / SEEKING ALPHA seekingalpha.com
AMEX:GDXLong
by TradingMavericks
SLV : RESET / POSITION TRADESLV: Breakout Potential SUMMARY : The iShares Silver Trust ETF is trading under pressure and the instrument has lost more than 17% of its value since August 10th, 2020. However, irrational exuberance in stock markets, a negative unemployment trend in the U.S., and an alarming surge in U.S. money supply could help SLV to break above prior highs. As a potential breakout trigger, we will be watching the $24 level because we think that a sustained bullish move here could extend into a much wider rally into 2021. SOURCE: Dec. 15, 2020 3:13 PM ET / iShares Silver Trust ETF (SLV) seekingalpha.com
AMEX:SLVLong
by TradingMavericks
Bitcoin (BTC) Going to $20,000? Big $40,000 Resistance Many people believe we're heading back towards $20,000 but I see it differently. Bitcoin has spent less than 12 days trading under $25,000 after breaking its all time high of $20k on December 16th 2020. Compared to the 148 days of Bitcoin being recognized trading above $30,000. There's just not much support at those levels. Sure we can still drop below $30,000 but if we did it has become clear to me that Bitcoin trading below $30k has been aggressively accumulated. If companies such as Ark Invest and MicroStrategy publicly announced they've purchased more Bitcoin in between $30k -$40k I'm inclined to believe they'll go drunk off buying below $25k and all the other institutions swimming with them. We've hit heavy a heavy psychological resistance at $40,000 and we could be trading sideways between $30k -$40k for a period of time as we aim to get back above the 200 day moving average. I do not believe this is the start of a bear market but I do believe this will be another phase of accumulation at these levels. Much peace, love, health, and wealth.
COINBASE:BTCUSDLong
by peacefuljustin