January 13

Momo Market Roundup, 1/13/2022 — A Weak Market Day Full of Opportunity

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The market was weak today.  The recovery of the past few days are starting to look like a lower high. We could be on the bring of even more selling. 

SPY started the day by double topping off the 473 watchlist level. If you grabbed the 470 puts at a buck, risking to a reclaim of 473, you would have done very well. Those contracts went to a high just shy of $5. Bulls are trying to defend the 465 level into the close — we'll see if it holds. There's potential for a gap down in the morning.

TSLA Falls Flat

So strong yesterday, Tesla (TSLA) showed up weak today. It lost the 1100 level after an initial bounce in the opening chaos. If you grabbed the 1100 puts at the double top, you could have gotten them for $10-$12. Now they're trading over $60. Excellent. 

Semis Give Up One Short After Another

The semiconductor stocks gapped up in the morning after Taiwan Semiconductor Mfg. (TSM) reported. But we called it — if they couldn't continue and make new highs, it might invite general market selling. 

Well, that's exactly how it played out. I love seeing the pre-market prep make calls like this, which help Edumomo members make better trades. 

How could you capitalize on the carnage? Advanced Micro Devices (AMD) 140 puts went from $1.50 to a high of $7. NVIDIA Corp (NVDA) 280 puts went from $2-$3 to a high of $14. TSM 145 puts went from $2.30-$2.50 to a high of $6-$7. You're welcome.

BA Takes Flight ... Briefly

Boeing (BA) was strong today in a weak market, but eventually gave it up after failing to hold our 225 watchlist level. If you went long in the opening action on the dip into our watchlist level, you could have taken the 225 calls anywhere from $0.08 to $1 and then sold them at the highs for almost $3. Let's keep an eye on this one in case rotation into value becomes a regular thing.

Member Trade of the Day

Edumomo member David_P killed it today, riding SPY and Amazon (AMZN) to a 37.28% gain! Epic.


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