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Bought puts here at $304.30.
Which is what they did. We will never see SPY sub $200 again. We just saw what happens when shit hits the fan and the market starts to correct. The FED powers up their printers and sends the market back up. I do admire the effectiveness of the FED a bit.
If any traders are confused about what has been going on the past couple months in the market, I did the research and this is what I found out. I now know why stocks have kept going up despite what has been happening in the economy.
When the pandemic began to shut down the economy the FED leaped into action and intervened to inject massive liquidity at an unprecedented level to financial institutions, banks and the credit market. This all happened behind closed doors and out of public view. They had to do so to prevent a big collapse in the stock and credit markets and this is their exact role in our economy.
Now, what people need to know is that the millions of daytraders and everyday investors active in the market are only responsible for 20% of the activity in the stock market. Instead, about a dozen massive financial firms like Vanguard and Blackrock are the ones that determine the value of stocks. Vanguard has 6.2 trillion $USD of AUM (Assets under management). Blackrock has 7.4 trillion in AUM.
With the FED printing literally trillions in liquidity to hand to these big players a lot of that money ends up being used to buy stocks. So the fed itself is not rigging futures or buying stocks themselves like some have suggested. They are providing massive liquidity into the financial system and what happens to that money is in the hands of the big players.
Now, some of that liquidity has spread down all the way to small businesses and regular people. That's what the credit market is for. All the FED can do is inject the money, how it spreads through the financial system is not in their control. Some of that money is being put to work by buying up stocks, which is what we are seeing with the market heading higher and higher.
So average traders can cry that the market is not reflecting the reality of the economy which is true. But the big players are using their free FED cash to gobble up stocks so this is the result. An overinflated stock market.
That's why no matter what bad news comes out the market just keeps churning higher. If there is a lot of free money floating around the big players will just use it to buy stocks and the actual fundamentals don't matter.
Liquidity matters more than fundamentals.
I was confused about all of this too, now I understand it.
I think tomorrow will be a down day but with how they've been manipulating this I'm not willing to risk my profit.
I just sold my puts for a 25% gain. This is has been making too many wild gap ups after down days. Not taking any risks.
Went short here at $295.50 via puts. Holding overnight.
The chart looks like it's setting up for $300 tomorrow. But my gut says to short here. Hmmm.
Looks like they wanted a $295.00 close due to the high OI on calls expiring today.
The week of FOMC April 27th-May 1st there was some particularly egregious manipulation. This is a pure casino until we find some direction out of this wedge of the daily.
hasn't gone anywhere for a solid month...all this gapping up and down all over the place between $280-$290 has been a game to enrich option writers aka DA BOYZ.
Still not above the 4/28 high. I'm bearish until it closes above that. If it closes below that I'm going short.
Yup I used to trade pennies. There were always personalities on the boards who acted loving and spoke as if they wanted everyone to make money, but they were really just pumpers dumping their shares on unwitting people who bought in to what they were being fed.
I agree. We're just anonymous names on here, people seem to have too much faith that people have honest intentions. That's what kinda turns me off to this board. We don't know who these people really are or what their real motives are. That's why I don't effusively heap praise on people here. Naivety runs wild here.
Nice trades man. Enjoy the gains.
Your strategy is genius, I will admit. I still only play one side at a time and only gain coins when the Boyz move the market my direction in a timely manner. Your style of option trading is much more versatile. Good stuff.
I think this goes over $300 in May and then ends up pinned around $290 for a few months. Then a drop going into end of year. I don't think it makes a new ATH this year at all.
The market is looking bullish. Algos held the 50sma. I'm now more open to calls next week after only feeling comfortable in puts this week.
Ok. I will check back tomorrow.
Was there news that caused SPY to rally at the end of the day? I missed it.
$trin spiked to 1.70 we got a handful of the biggest stocks holding this up, they start to drop and the bottoms falling out.
Post a screencap of one of your trades. Don't be offended, but I always think you're paper trading. It's just something about you. Post one screencap of your trades and I won't think that anymore. I'm saying this in a friendly way.
It keeps bouncing at $279, feels like a bear trap. That's why I'm staying out of puts.
$trin at 1.35 now and the hourly is below VWAP. strong bearish signals.
You said you wanna see real time trades, that's what I just did. Real time entry and exit.
4/29 $285P @ $6.39.
I went short at the open, expecting a down day. At $282 I will cut losses.
I did a quick USO long earlier. Feels scary holding it.
So each of you, are you long or short into tomorrow? publicly state your side for the record.
4EMA about to cross below the 10EMA on the daily, which I use as a signal to go short. Are the Boyz gonna drop this tomorrow?
Screenshot?
IRS stimulus checks hitting peoples accounts now. Discretionary spending about to get a lift. Should boost SPY. I'm long 4/24 $280C.
Hope you now see the naivete of taking positions based on peoples "forecasts" here or having too much faith in people on here. Those puts will most likely expire at $0.00.
There's no reason to be short either. I don't see anything on the chart that strongly hints at anything next week. I can't see the wisdom in being anything but neutral heading into the weekend.
Sold break-even.