I also prefer to short after a stock enters a bear trend but
rallies to 20ema, like ARKK down 12% in 4 days or other ARK funds.
Once a trade is entered and the direction is correct, trail the
stop. Or buy puts at the same 20ema mark. The previous leaders are
now crushed, like net, upst, crwd, aehr, asan, etc. they fell like
rocks.
I have entered TZA and IWM puts on Thursday, a bit early, but my
plan is to add to my TZA and puts to build a larger position if /
when IWM rallies up to 20ema, or if IWM trades sideways and let the
20ema catches up (similar to ARKK's recent move). There are 2
candles being rejected at 220 on IWM which is close to 20ema, but I
was asleep and could not enter the short at those price, will try
to set a bracket buy order instead. IWM weekly MACD does not look
good, but IWM is close to support.
I bought TNA when IWM reversed from Dec low and was thinking if
IWM can trade to 228, but it was rejected by its 50dma and
horizontal resistant in 2 spots in early Dec gapped down and my TNA
was stopped out. But Wednesday's drop was too quick and I was not
prepared to enter TZA.
I have also entered XRT puts on Thursday. I cannot find an
inverse XRT ETF.
Both IWM and XRT look similarly bad, but both are close to
horizontal support. I do see a weak support below on both once they
are broken, but after that, there is not much support.
One thing I have not tried is buying calls on inverse ETF such
as TZA, or puts on RETL (if it is there). I am not experienced with
options, only know the basics like buy 0.7 delta 30 - 60 DTE.
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I also prefer to short
Matt and Steve, since interest rates are rising and non ...
Posted by sydney on 8th of Jan 2022 at 04:15 pm
I also prefer to short after a stock enters a bear trend but rallies to 20ema, like ARKK down 12% in 4 days or other ARK funds. Once a trade is entered and the direction is correct, trail the stop. Or buy puts at the same 20ema mark. The previous leaders are now crushed, like net, upst, crwd, aehr, asan, etc. they fell like rocks.
I have entered TZA and IWM puts on Thursday, a bit early, but my plan is to add to my TZA and puts to build a larger position if / when IWM rallies up to 20ema, or if IWM trades sideways and let the 20ema catches up (similar to ARKK's recent move). There are 2 candles being rejected at 220 on IWM which is close to 20ema, but I was asleep and could not enter the short at those price, will try to set a bracket buy order instead. IWM weekly MACD does not look good, but IWM is close to support.
I bought TNA when IWM reversed from Dec low and was thinking if IWM can trade to 228, but it was rejected by its 50dma and horizontal resistant in 2 spots in early Dec gapped down and my TNA was stopped out. But Wednesday's drop was too quick and I was not prepared to enter TZA.
I have also entered XRT puts on Thursday. I cannot find an inverse XRT ETF.
Both IWM and XRT look similarly bad, but both are close to horizontal support. I do see a weak support below on both once they are broken, but after that, there is not much support.
One thing I have not tried is buying calls on inverse ETF such as TZA, or puts on RETL (if it is there). I am not experienced with options, only know the basics like buy 0.7 delta 30 - 60 DTE.