Why The STRONG August Jobs Report Will CRASH Stocks 🐻🔥

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Scott Reese // Trading, Investing, & Finance

Күн бұрын

Пікірлер: 23

@michaelheyn2484 2 жыл бұрын

I'm probably going to short 2 ES futures until EOY, fingers are crossed that a bear market rally doesn't blow up my account. With this inflation, the FED can't jump in and save the market. I think I should have taken the trade months ago.

@scottreesetradinginvesting7936 2 жыл бұрын

Just some friendly advice here...any strategy based on crossing your fingers and hoping your account doesn't blow up is not a strategy at all haha...that's called gambling :) That said, if you still want to give your portfolio a bearish bias, then shorting /ES is a great and capital efficient way to do that. But you have to manage your positions carefully...because I can guarantee you we will definitely see another bear market rally, and probably before this year is over.

@michaelheyn2484 2 жыл бұрын

@@scottreesetradinginvesting7936 I view everything as a gamble, even driving to get pizza. I also think we will see one, however, the strategy is betting that my drawdown won't be too high. Which in this case means the market hits January's levels - which I highly doubt. That said, it could still happen. It may be wise to have 1 short and then short 1 more near my perceived peak of the next rally - the downside of that is, if this current retracement isn't a trough before another rally && instead is headed straight down then I miss up on the downside (err.. my upside?) Everything's a gamble

@cknight3457 2 жыл бұрын

It's tough to decide what to do when the future outlook is bleak. Selling put options will probably result in assignment and imminent bag holding. So those are out. In the past, gold would be good, but gold has been going down too supposedly on the strength of the dollar which seems counterintuitive. Buy Puts or LEAPS? Consumer staples? Energy? Keep cash? I don't know.

@scottreesetradinginvesting7936 2 жыл бұрын

It depends how you manage your positions. As you saw in my previous video with my NVDA puts, I've been able to save that position for the time being. So yes, just selling puts in this market and then doing nothing will definitely result in some major bag holding...which is also fine if you're a very long-term investor AND you're selling puts on quality companies. But in my opinion, if you really want the chance to make money in this market, you really have to be an active, short-term trader. Every asset class is sinking, so the traditional buy-and-hold approach is not going to work for a very long time.

@BOGsaHtrade 2 жыл бұрын

I'm currently eyeing pre-pandemic company prices on my favorites, and have been mapping out my buying strategy that mostly revolves around selling puts. I'm hoping SPY drops below 370, then settles in the 345 range but like Scott mentioned, it can easily dip under 300. Ultimately, we don't know how bad things could get so I've decided to not miss the opportunity and sell puts on companies that flash crash, like NVDA on the 1st. I'm already a shareholder and planning on keeping the shares so I'm indifferent if assigned. It also gives me the option to sell covered calls if an opportunity presents itself, therefore, I don't view it as bag-holding.

@BOGsaHtrade 2 жыл бұрын

I'm staying away from LEAPS because of the theta decay if we have a long bear market.

@cknight3457 2 жыл бұрын

@@BOGsaHtrade It will probably be a long bear market. Guessing two and half more years if we're lucky.

@cknight3457 2 жыл бұрын

@@scottreesetradinginvesting7936 I'll give your method a try now that I'm set up for paper trading and margin on the real side. You're absolutely right! This is definitely not the market for traditional investing.