Nvidia Stock: Running Out Of Buyers 6-21-24


Trade Stocks With Pete  
Trade Options With John

Outline

I. Introduction
A. Topic: Current state of the stock market

II. NVIDIA’s Market Dominance
A. NVIDIA’s position in the S&P 500
B. Concerns about market breadth
C. Sector rotation and market health

III. Stock Market Analysis
A. Heavy volume reversals in semiconductor stocks
B. Institutional money flow
C. Shorting vs. hedging strategies

IV. Market Indicators and Trading Strategies
A. VIX (Volatility Index) and its implications
B. Options trading strategies in low volatility environments
C. Sector rotation from AI chips to AI servers

V. Current Market Trends
A. Shift from speculation to more defensive plays
B. Impact of treasury yields on equity markets
C. Emerging sectors: real estate, financials, energy

VI. Stock Analysis Examples
A. Nike (NKE)
B. Twist Bioscience (TWST)
C. Marathon Petroleum (MPC)

VII. Trading Tips and Lessons
A. Importance of tracking market changes
B. Adjusting position sizes based on market conditions
C. Gradual entry into positions (legging in)

VIII. Conclusion
A. Outlook for the coming week
B. Importance of conviction and sentiment in sizing positions

Everybody, welcome. Welcome to today’s episode of the Stocks and Options podcast. My name is Pete, here with John Napolitano.

How you doing, John? I’m great, Pete. How’s everybody doing? Good to see everybody on here. Everybody’s doing good here.

So we’re just going to jump right into it. No holding back. We’re going to talk about the elephant in the room, which is literally the stock market elephant right now, whichis, is it good, bad or not? Something anybody should worry about? That Nvidia is so deeply ingrained everywhere right now.

Is it great that it’s carrying the market higher? Do retail investors have any idea what’s going on it, should they be worried? Should anybody be worried as long as it’s stillgoing up? And what would happen if the stock starts to come back in? Yeah. Nvidia has been the dominant player, obviously. There was news this week that it is now thelargest company in the S and P 500, maybe with the exception today and yesterday, because it has gone down a little bit.

But it’s amazing how the trajectory of growth that it’s had over the last several years, especially even now, after the stock split, it’s continued to go higher. So it is adominant player. There was some momentum, obviously, after the split from the retail crowd, and that continues to push the whole group higher.

But eventually what I get nervous is when the breadth of the market just doesn’t seem to continue or there’d be any follow through. What I did see that was encouraging earlier in the week was energy quite a little bit in some other sectors, and you could see on the heat map that you just pulled up. Obviously your semiconductor group isthat bright green area right below apple.

But basically you have a little bit of green in financials. You got some green in communications. Energy was up a little bit yesterday, so it’s somewhat encouraging.

It is a holiday week. We had Wednesday off, obviously, I don’t think volumes are all that great, but we have quadruple witching that’s today. So you might see some, a littlebit of sector rotation, maybe an increase in volatility.

This is all healthy stuff. But to have Nvidia on its own continually just take the market higher is not something you want to see. So although I’m encouraged by some of the price action this week, I hope the breadth continues into other groups, because eventually, if this thing decides to roll over, we don’t want the whole market to roll over with it.

It’ll happen quick. The one thing I did notice yesterday, you know, talking about individual industry groups, you kind of narrowed down a little bit over here. The semiconductors, a lot of heavy volume reversals in semiconductor stocks yesterday.

And you know, there’s the battle between is the bull market in semiconductor stock still valid? Of course, one day is not going to change this entire trend, but we can’tignore this. When we start to reverse on above average volume, we open at the high, close on the low, and we start to see that among a larger group of stocks doing thesame thing, that’s something to sit up and notice and maybe manage to trades a little bit differently. We get a lot of questions all the time about when should I look to make a different decision.

It really comes down to has anything changed? And a heavy volume reversal day across the entire industry group is something to make yourself sit up and maybe scaleback a little bit, maybe move up. Like I actually moved up my trailing stop loss in a mat today just because I’m like, I’m not, just because I have my stop loss down there, it wiped out two days worth of gains with one candle and heavy volume. I’m like, the circumstances change, so I’m changing my trade management.

Yeah, I mean, you have to ask yourself the question, what does a heavy volume reversal day actually mean? And to me it always goes back to institutions, right. Because institutions make up most of the volume on the exchange, right. So when you see a heavy volume reversal day in a certain group, what that’s telling me, especially if markets continue to rise or if markets are somewhat flat, what you see is mark, money coming out of that group, which is what’s happening.

And then you’re seeing it going into other groups or out of the equity market now because treasuries are so, yields are so low, they’re on 400 and 2421, whatever it was.My guess is some of this money that’s pouring out of some of these semiconductors is luckily remaining in the equity markets. So that could cause markets to continue to kind of melt higher.

But just different groups like the Dow Jones might start to get a little bit hot or parts of the S and P might decide to get a little bit hotter, but that’s all healthy. That’sactually good news. What you don’t want to see is heavy volume reversals followed by really significant down days in the market.

And that hasn’t happened. We pulled back off the highs a little bit, but nothing too crazy. And this is an important, and we talk about this all the time.

Just because you see a little bit of outflow out of these groups does not necessarily mean, it’s a good shorting opportunity, you know what I mean? Difference between I don’t want to be long anymore versus I want to be short. I have not had any success with short sales. Even the stocks that have been going down over the last eight ornine months and I put some on as hedges, they just, they just haven’t followed through.

Yeah, my shorts have not performed well. And it’s basically the old term, you know, rising tide kind of lifts all boats. You might get a one or two day downdraft where yousay, hey, you know, maybe I should throw on a short just to hedge like you said, because I don’t want to be only long.

I want to be balanced. Especially as an options trader, I’m always balanced. I always have one or two shorts on just to stay balanced, just to make sure that if things do start to reverse, you know, I have some exposure and, you know, those shorts will lag your performance.

They will. But you have to keep in mind that markets change very quickly and you have to kind of have that mindset. So it just is what it is, unfortunately.

So shorting and putting on a hedge, you want to be super clear to anybody who might not know the term or might not actually know the implementation of it. It’s not shorting strong stocks. You’re shorting stocks that are already weak, showing relative weakness to when the market’s strong.

And the theory is that though, if the market pulls back and you put the short on or the hedge on at the right time, because those stocks are already weak, they will go down the strongest when the market reverses and that short sale gain will hold you in the bullish ideas. It’s kind of compensating one for the other to hold on to thepositions that you like in the other direction. One of the worst things you can do is try to short a very strong stock in a strong sector, in a strong market, because that is like you have all, if you have a sailboat with three sails, all the wins are against you, right? The market, the sector and the stock is blowing in your face.

So what you don’t want to do is short something like that because that’s like getting in front of walking in front of a train. What you want to do is like you mentioned, always do your analysis. Always look for relative groups that are showing relative weaknesses and then stocks within those groups that are showing relative weakness.

So that gives you a little bit of an edge over, you know, over just trying to short these really crisp, crazy, ridiculously strong stocks. So one thing that has happened overthe last few weeks, we do this private custom research for our community, and despite the market making new all time highs this week, we’ve actually had a much biggerlist. The size of the list of stocks that meet bearish stacked order flow compared to bullish stacked order flow, which really kind of emphasizes the fact that it’s really just atiny handful of heavily weighted stocks that are carrying the indices higher, which I think, again, this is a very general statement, but I think it’s going to really catch a lot of retail traders offside or off guard because they’re mostly focused on what’s the Dow doing, what’s the S and P doing, and not really understanding why they’re going up.

So we have this big list of stocks that meet bearish activity that could be and are being used for short sales, kind of work our way over. You can see how small the list is onthe bullish side while the market’s making new all time highs. And then we kind of work our way over.

This is the way we do our research every night. We start with the general metrics and work our way over from sector rotation, and you can actually see how we’ve rotated throughout the week. It’s just a sea of white or nothing.

Right. But then this is really the one that’s the most interesting to me, which is we track sector momentum based on a percentage of stocks, and you can see the lightgreen versus the dark green and whatnot. And this is basically June.

So while the market’s making these all time highs for the majority of the month, most of the sectors have had negative percentage of stocks over a five day period. So wehave a little bit of a battle going on right now with stock selection and more importantly, which has been a very big topic of conversation in the community, the size of theinitial allocation for new ideas we have, the market making new highs. You have.

Maybe you could talk about this in a second, John, you have the VIX still down in very bullish territory, which basically is giving us mixed signals, for lack of a better way of putting it. And I’d be curious, John, how you handle when the signals are less than perfect like this, where new highs fix down in the bottom. Yeah.

The individual sectors and the five day momentum is not good at all, quite honestly, the toppiness of the market has definitely gotten investors nervous. And what I mean by investors, large institutions, you see less participation at these levels, even though I think we’ve made 30 all time highs since the beginning of the year. Something ridiculous like that.

But every time we’ve made those new highs, there’s been somewhat less participation. And what that’s telling me is that people are just not selling, but they’re not necessarily buying and causing the momentum to go higher. We might get a slow grind higher just because money is being put to work, but there’s just no enthusiasm.

And you could tell the short. It doesn’t surprise me that you have more bearish signals than bullish signals because basically they’re just struggling to just continue along. And that happens usually at the top of a market.

If you look historically, when you get into a lowering rate environment, which we’re starting to head into a tightening cycle, markets tend to lag once the cycle begins. So keep in mind the stock, and this is good for new traders to understand, the stock market is a forward looking indicator, which basically means, hey, listen, what’s going to happen in the next six to nine months? Why should I buy stocks? Why should they go higher? Right now? All the good news is all the positive sentiment, the economy is buzzing along, employment stable, rates are going down, all that’s priced in already. So what’s next? You know what I mean? That’s what you got to ask yourself.

And I can’t come up with an answer. And I think that’s what we’re in for right now. It doesn’t mean we’re necessarily going to roll over.

What it means is we’re going to have trouble continuing to go higher and some names are going to start to stumble. And that’s what we’re seeing. So to answer yourquestion, with Vix being kind of complacent right now, as an options trader, you basically have four choices instead of two choices.

So you can go long or you can go short if you’re a stock trader, if you’re an options trader, you can go long or you can go short, but you can express each one two differentways by being a debit trader or a credit trader. Now, when volatility is low, you want to be a debit trader. Are we considering volatility alone? I just want to make sure everybody has context, yes.

So because volatility is cheap and low, that means that options premiums are generally not expanded or expensive. There are obviously exceptions. Individual stocks could have news and so on and so forth.

I’m generalizing here. Obviously with volatility being cheap, you can make the assumption that options premiums are cheap. And if they’re cheap, you should be a buyer of calls or a buyer of puts.

So that means you could go long or short, but you’re going to be a debit trader, not a credit trader. If volatility was high, you’d do the opposite. You’d be inclined to sell calls or be a net seller of puts where you’re receiving a premium that’s inflated and you’re hoping the premium dwindles down to zero where you get paid.

That’s the main difference. So right now, to sum all that up, you want to be a debit trader, not a credit trader. Okay, so as far as sector rotation right now, we obviously justtalked about technology and broke it down even further down into semiconductors.

We’ve also seen recently, I don’t know if this came up on your scans as well, John, but some of now we’re shifting from AI chips to AI servers. Now, the companies that have started to wake up recently, SMCI, Dell and even NtAP a little bit more. And the reason I’m bringing this up is because obviously the expectation or the excitementaround what AI can do was built off of the possibilities first and the chips that are required to power these things.

Now we’re seeing a rotational shift into the companies that are actually building the servers that are using the chips. I think this is important just from a basic headlineperspective for people to understand that this is the same progression that happened with the Internet and the.com boom where Cisco basically was the most valuablecompany period.

At that particular time. As a matter of fact, it was the indicator stock. When I first started day trading way back in April 17 of 2000, people would actually tell us, watch Cisco, it moves before the futures.

That’s how dominant it was. But then other companies, the more uses that were found, the money started to rotate into other areas. And I think people need to start tothink a little bit differently now.

And I think we’re seeing that probably in the, in the biggest way right now. With AMD was one of the big dogs. Every time Nvidia moved, the stock was kind of like the younger brother.

Yeah. So I think the ideas are shifting. What do you think about that? Yeah, I agree.

I think that, you know, the old concept of the picks and the shovels, right from the gold rush of 1849, the picks and the shovels always win. And so what you’re looking now, it’s part of a broader conversation of a move out of speculation and more growth areas and into more defensive type names. So, even within the tech space, there’s more defensive plays like the actual infrastructure and the actual hardware or whatever you want to call it versus.

Okay, well, what AI stock is going to come up with the latest AI or what’s the latest one that’s going to dominate that speculation is starting to diminish a little bit, and it’sgoing into the more real, substantial type names. So I see it as a flight to quality in a very, in a kind of a low key way. And that’s something, that’s something to keep an eye on.

I think that that trend could continue and it could continue across the market and across sectors where you might see an outflow out of equities completely. You know, if things were to deteriorate a little bit. Well, right now, money staying there because the treasury yield has, has not started.

That’s the main reason. 

So that the main thing, I think what other, what traders, what new traders need to realize is that the bond market is a lot bigger in some ways. If you look at sovereignwealth and all the different governments that buy our debt, the treasury market is dominant. So you have to look and see what they’re doing to kind of see what the equitymarket is going to do.

And again, it all goes back to institutions where if you’re a money manager and you’re managing billions of dollars and you can make, let’s say, 5% on treasuries, youknow, that that’s a nice return for not taking any risk whatsoever. So if you think in terms of, like, these, you know, if you can make something like that in the treasurymarket, it would behoove you to take money out of equities and into treasuries. Now, that hasn’t happened because treasuries are 421 or so right now.

So that is, you know, that’s what’s happening. But if that was to change, that could be a significant move out of a lot of. And it would start with the speculative stuff.

Speculative equities would diminish and some of the more defensive names would hold on, and you’d see that rotation occur. Mike. So from secular rotation perspective,we’re starting to see a little bit of real estate perking up a little bit.

Like you just mentioned before, financials are starting to catch a little bit of a bid. So we’re starting to shift our thought process kind of behind the scenes when we do ourdaily research now, where we’re still trading the tech stocks right now, and specifically semiconductors and hardware, but we’re starting to dip our toes into other areas because we actually just ironically wrote an article in the middle of the week that the Dow was kind of stuck in the middle of nowhere, largely because financial has been dead in the water for the last month or so. Energy, we’ll talk about that in a second.

And industrials, which are a dominant part of the Dow, really been doing nothing. So you can see where the Dow is compared to even, let’s say the queues. But ironically, right after we wrote the article, energy kind of lit it up for a couple of days.

And I think it was yesterday I wrote, or maybe it was this morning, when we get down into sector rotation, the big thing was technology obviously remaining the big doghere. But 19 energy stocks closed greater than 1% above the opening price yesterday. Yeah, I put on an energy trade this week.

Just start, right. These are the kind of things that you need to notice and you’ll get a lot of people in the community, especially on the coaching side, come in and ask howdo I get better entries? And it really comes yet you need to notice these things. Like you need to do that extra ten or 15 minutes.

I mean, obviously we’re doing it for our community. But that’s a pretty bright green sign there just from yesterday. And I want to be clear, that’s not net change percentage that’s changed from yesterday’s open.

So that means that 19 stocks had these big green candles yesterday, which means somebody stepped up and in that industry, so institutional attention shifted there. Not bullish yet, clearly, but you need to notice these things for future trades and get better entries. Yeah, you have to look where that flow goes because it could be part of alonger term trend or could be just some kind of sleepy rotation in a holiday shortened week where institutions trying to be sneaky and pull money out of tech and intoother sectors quietly.

Because keep in mind they play the long game on institutions and what, I mean, there’s different types of institutions I’m talking about like the buy and hold crowd. Like I’m talking about the mutual funds, you know, the 401K plans, the fidelities, the Vanguards, the black rocks of the world. They’re the ones who buy and hold for years.

So they don’t really care about intraday trading so much. They just want to put on size. They want to get as much size as they can at cheap prices.

That’s their goal. So when they see a beleaguered sector like energy, eventually energy is going to go up. We don’t know when it could be a year from now, but that’s howthey think.

They’re like, well, it’s cheap. Let me start nibbling a little bit. Taking money out of tech, which has outperformed significantly, it’s just portfolio management 101, basically what they’re doing, because they have to continually outperform.

You know, they’re only as good as their last quarter’s performance. That’s how they’re graded based on their peers and on their, on their index. So they, on theirbenchmark.

So they have to kind of shift like this. And you’ll see it might only last a day sometimes, or sometimes it might be part of a longer conversation where there might be amacro issue with energy, where it’s time to start buying. But we’ll know that if we, if, like you said, if we do the analysis every week, you’ll see those trends in real time as they’re happening, and you’ll be able, as a retail trader who’s nimble, could jump on the bandwagon, no problem, and profit from something like that.

We kind of call it the ripple effect. I want to be clear, just in case anybody’s watching this video a month from now, I’m not saying buy energy. What I am saying is something changed.

Big green days like that market pulling back. It’s obviously still going down right now. But we have what we call a tracking journal.

And I’ll give everybody an example of something that we’re looking at right now when we put the ideas out. And obviously some of the stuff we’re showing is the heavier volume during this pause on the way down. That’s where buying starts to happen.

Right. But even if we’re not looking to trade them right now, we do have other ideas that are interesting that need to go into your journal to say, not now, but something significant happened. And now I have to keep going back to it to look for an entry.

And I think that’s one of the reasons that people miss good entries, is because they’re only looking at what they’re looking to trade today, as opposed to building a story ora thesis for what’s going on in the market right now and then being prepared to make those decisions before they need to make the decisions, which is kind of why wetrack short sales or bearish ideas even in a bullish market. Because you still need hedges if you need them. Absolutely.

And I think that there’s different players in the market. All the stock market really is are buyers meeting sellers. Right.

So if you start to see institutional, institutional flow going from one group into another, let’s say in this example, let’s say technology into energy just to keep things simple. It doesn’t mean you should necessarily be buying it, but it does show up on your radar. And what you can then do is apply what you’ve seen in order flow to the technicals.

So that’s where the second part comes in. You look at the technicals and say, well, have we broken the downtrend yet? Because if we broke the downtrend, that’s going toattract even more buyers. It’s going to start attracting the hedge funds.

It’s going to start attracting the technical buyers, people like us, traders, prop desk, stuff like that. That’s the secondary group that will pile in. And that’s when themomentum starts to gain because you have the institutions in there buying, too.

And now the cat’s out of the bag and now other people start jumping on. And that’s when we jump on. We don’t necessarily have to be early.

We could be late to the game as retail traders and still profit because now we’re going with trend, you know, and that’s something to keep in mind. So speaking of thosekinds of reversals or stocks that catch your attention, I just want to pop on the screen here one that is definitely interesting to me right now. Nike’s kind of been in the doghouse going all the way back to the entire year.

Basically. This one earnings report really hasn’t caught a bid again. But a lot of these other stocks, apparel stocks, apparel, retail stocks, Abercrombie and rich and a few stocks like that have been getting the spotlight.

And this stock is now on my radar. You can actually see down here, earnings are actually coming out. So heading into next week and in the end of the month, I’m going to be stalking Nike to see if we get some follow through.

Yeah, that looks like now, that’s not necessarily an uptrend. Right. But it does look to me like a broken downtrend.

You know what I mean? So it looks like it’s poking its head above its, of its, you know, of the last pivot high that it did from its lowest low. And that’s basically, it’s also making, it’s also making higher lows. Yeah, slowly, right.

Every couple of weeks here, it’s able to stay a little bit higher. We call that holding the bid in our community. Exactly.

So it’s holding the bid. It’s making kind of like it’s kind of breaking the downtrend. And it’s a very slight early stage uptrend.

Like you said, it’s a little bit early, but again, it’s not about necessarily catching the bottom. Right. It’s about watching for the change and then seeing if there’s follow through and then jumping on.

So as far as where the vix is right now, obviously, volatility has not expanded. Do you have any ideas on your table that you’re looking at coming up? Well, I think with the VIX being so compressed, and this is what we talk about sizing. Right.

When you’re at the kind of all time highs and things are very toppy, it could be very challenging. So anything that I do put on will probably be smaller in size. I want to bevery clear about that.

Right now. I’m not going all in on anything because I would like to see a healthy pullback or some sort of rotation occur where I could get into some of these newerleading sectors that should show some leadership in the future. But that being said, I was looking at different things.

One of the things I put on was twist twst. It’s a healthcare biology, a bioscience company. You can see here it broke its long term downtrend, and it’s actually kind of in an uptrend now.

If you look at it, it’s already made some significant higher lows, and it looks like it’s poised to potentially break out if it get past that low resistance area there. So I’m tryingto find things that are, and again, it’s early stages from potentially going higher again, not putting, not betting the farm on something like that. I also put on MPC, marathonpetroleum this week.

That one’s kind of pulled back significantly. And basically, again, it’s just in that space. I think if energy catches a bid, and it did a little bit this week, this one could potentially run up a little bit, run a little bit higher, almost a countertrend trade because it had, it’s in a significant downturn, but it looks like it’s leveled off a little bit.

And there’s a lot of charts that look like this. Like if you look at Chevron, Exxon, Devon Energy, all of them, they all kind of look like this. This actually happens to be one ofmy favorite stocks in, in the energy sector, and you can actually see why when it trends, it just moves beautifully.

We’ve got a couple of these moves that lasted roughly two months. Yeah, it’s a little, it was a little bit oversold and the whole group was oversold. So now, you know,energy, you know, this whole little, this little subtle shift and institutional flow might be enough to kind of get that trend going again and again.

That support where it took off last time, that’s not. Yeah, exactly. So that’s something I always keep on my radar.

And on top of that, as an options trader, and I’m sure as a stock, you know, stock trading, too, you don’t need to, you could leg into something like this. You know, I went ahead and I bought, I believe, the August calls on this. So I have a couple of months to worry about any kind of downturn or anything like that.

And I only started with a starter position. So this way, as it continues to rise, I could add to it. So I think that’s a really important lesson that maybe we could end today with.

John. I think it’s a mistake or maybe just something that is not taught enough or learned enough in experience is we built all this argument around, should we be long?Where is market breadth? It feels like it’s pulling back, that kind of thing. You could still be long, but you don’t necessarily need to be long.

And for those who don’t know what long means, long means you’re buying stocks in this, in the equity side of things, and obviously long on the option side means you’rebuying the options as opposed to selling them. You can still be long, but you don’t need to be as long. You don’t need to be all in, all the time.

And I personally think that’s, and I hate to use this word, but it’s one of the secrets of trading is adjusting your allowable risk to match what’s available in the market andwhat’s likely to happen next. Yeah, you have to have like a little bit of a mental sentiment indicator to kind of come up with a sizing rule. And to me, when, when we’remaking 30 times all times highs, you know, 30 times this year, and every time the volume is getting smaller and smaller.

That tells me that, hey, if institutions are backing off, maybe I should, too. And that’s, that’s what I usually do. So I’ll still go along, I’ll still find some opportunity, but I’m notgoing to go all in on anything until I see some follow through.

Yep, exactly. I’ve been using the word follow through day quite a bit. So for me, next week, I’m going to be looking at, obviously, I’m looking to see if is financial going tocontinue to catch the bid? Is real estate going to end up continuing? This is mostly reits real estate.

The home builder stocks have actually taken a little bit of a hit recently. Lennar and toll brothers and all those guys actually looking more towards the, the larger funds. With, on the real estate side, tech is still kind of hovering right around 50%.

So obviously still strong, but we’re seeing the heavy volume pullback, so that adjusting position size on those ideas. But that’s kind of where I’m looking. Heading into next week.

Yeah, I’m going to be doing the same, I think, you know, I’m going to try to see what sectors. At the end of the day, I’ll take a better look at, like, what sectors kind of held up this week, and I’ll try to, like, narrow my focus best I can. And as far as sizing again, I’m going to start with quarter positions.

So if you could figure out what your maximum loss is per, you know, per trade, let’s say, then you could kind of back into how many shares or how many contracts youshould buy for your maximum risk based on your stop loss. Once you figure that out, then you could figure out what a half position is or what a quarter position is. And that’s usually how I kind of back off from that.

So I’ll start with quarter positions and work my way up, and that’s what I. And that’s what I’m going to start. That’s what I’ve been doing this week.

We actually had a very similar conversation on our coaching call yesterday at 1230, where we have a specific way of teaching everybody how to choose the right risk forthe right situation. And normally, whatever that dollar amount is, you kind of have your initial entry and your stop loss, and you get the right share size for that window, butwith the way the market’s trading. And again, I want to give everybody a visual when it looks like that, where it’s not screaming green, that’s for sure.

We’re working that initial position in two pieces as opposed to just one with the original stop loss. So if we’re wrong, it pulls back. It’s half of what we intended to risk if itdoes work out and move in our favor.

Now we’re just taking two pieces to get to that share size, as opposed to a perfect market where everything’s green and you have a little bit more conviction to put that on.And I think that’s a lesson that I wish I would have learned 20 years ago, that’s for sure. Yeah.

Unfortunately, sometimes experience has to be the teacher, but, yeah, I mean, conviction and sentiment are the things that you measure your size by, and that’s. That’s what you have to kind of think about. Yep, I agree.

All right, everybody going to call a meeting if you want to learn a little bit more about work with myself and John on the stocks and options side, we’ll have some links below the video and if you have any questions, our support staff link email will be there as well. So have a great day, everybody. We’ll speak to you soon.

John, have a wonderful day. Thanks, Pete. Bye bye.

Take care, everybody.

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Stocks  Long stock ideas Financials (BAC, GS) with potential for pullbacks but overall bullish  Healthcare (BHVN, JNJ) showing relative strength  Technology (DOCS) early uptrend Short stock ideas Basic materials (AEM, STLD) clearly bearish sector Energy (XOM, CVX) at support levels but potential to go lower  Risk management Position sizing critical in volatile markets  Use stop…

Podcast: Stocks & Options 3-23-24

Trade Stocks With Pete  |  Trade Options With John Summary Navigating the late-stage market cycle: How to stay cautiously bullish while avoiding potential pitfalls   Mastering the art of chart-reading: Discover why respecting technicals is crucial for trading success, no matter your opinions   Traders vs. Investors: Uncover the surprising differences in how they approach…

Options Trading Q&A

0:00 – 6:36 Identifying the Market6:36 – 8:10 Great Idea, Not Expressed Right8:11 – 10:37 Implied Volatility10:39 – 11:38 Credit side11:39 – 15:53 Call Options Off the Bottom15:54 – 21:40 Risk to Reward Ratio (Aarons Question)21:42 – 25:40 Diagonal vs Vertical Spreads25:41 – 34:36 Difference of Equity Traders and Options Trader34:37 – 37:15 Biggest Mistakes with Fast Moving…

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