Big Short on the SPY
We began the day by betting the entire market would dip, putting out the word on the Edumomo watchlist to look for the push rip gap-up fail on the SPY. Using the levels we were targeting our 467 watchlist level.
Once SPY hit 470s and got weak we bought 469 puts against the SPY for $0.32 betting it will hit $2. 469-467 = $2. That is a great risk/reward! When the fail came, just as we anticipated, those puts were worth $2, a nice 6x increase. What goes up must come down ...
Now it's wait-and-see time. Will the upper trend fail, or will we see consolidation to fill the gap and another leg up? Only time will tell.
AMZN Continues its Run
Amazon (AMZN) cleared up over our 3500. We think this could be because of the Rivian IPO announcement. Amazon has a large stake in Rivian.
Let's see if the party continues. If the market holds up, and RIVN has a good showing next week, we could see Amazon go to 3600 next week, possibly even 3700+.
Pfizer Eats MRNA's Lunch
As if the bad earnings report wasn't bad enough, Moderna (MRNA) tanked again in the wake of Pfizer's announcement of its new antiviral pill. MRNA lost another 50 points overnight, for a total loss of about 100 points—over 30% of its value—in two days.
This was a big short opportunity, but it also had a nice rally at the end of the day. We think it dropped so much that it's probably going to pop sometime next week, possibly up somewhere in the 245-260 level.
Sympathy for LCID
Lucid Group Inc (LCID) seems to be in a sympathy rip. Sympathy for whom? I thought it would be Tesla (TSLA) but now I'm thinking Rivian.
I mentioned getting 40 calls for swing trades earlier in the week. Today it closed near $42. Watch 42.50 to trigger more upside.
LCID is a squirly stock, but with a good showing from Rivian we could see it rip up to 45 or even 50 soon enough.
PTON Crashes Overnight
Peleton (PTON) presented us with another short opportunity after a bad earnings report. It ripped to 61, then suffered non-stop selling all day. We're looking for more lows next week—50, possibly even 40.
Member Trade of the Day
Edumomo member Elon Pepe wins again with just two trades, cutting AMD and adding to his ABNB positions for a 19.92% gain on his account. Surgical!
