Lions, as of now it looks like my call on eBay is not playing out in the manner in which I believed it would.
Yesterday's market trading action made a quick reversal early on which forced me to take up a 10% out of the money hedge on my EBAY calls, and although my hedge did take some of the sting out of the entry day reversal, I did close the trade earlier today with a loss.
Today's trading action is again wildly bizarre.
With regard to the tech sector, Amazon is down nearly 3% on an earnings miss and Apple is down as well.
It appears that this market may be ripe to fall.
Now I am not saying that we are going to experience a crash, but a well needed pullback would be very welcome here.
Yesterday I posted a position against QQQ on my website TradersChoice.net, today I took up yet another bet against the market, this one against ticker SPY, click here: https://www.traderschoice.net/money-page--stock-picks.html
With regard to these positions against the Q's and SPY, as always exercise caution.
My concern with betting against the market, even at these over the top valuations, is it seems that the Federal Reserve is determined to push stocks higher. Personally I do expect the market to continue its march higher on the back of a weaker dollar and continued Federal Reserve easy monetary policy.
Again, I would really like to see a pullback in this market as a set up for a new leg higher.
Happy hunting my Lions!
