From $2.50 to $5.00 on the QQQ puts today
Right now, everyone is screaming, "Why is SpaceX going down? Aren't the funds required to buy it? I don't understand!"
Here is the truth: you need to take rational thought and throw it out the window. It doesn't play anymore. What plays is the algorithmic nature of the market that revolves around VWAP.
The market is trying to sucker you into believing this is a good stock to buy. It’s obviously not. Since we blew out of it at $220, we've been shorting it religiously.
You don't even have to trade the private company, because you can trade the mothership ETF, $SPCX. Or the inverse ETF, $SPCG.
Today, $SPCX gave us the fake-out, shake-out. It gave a true reason to buy, but that reason was incredibly short-lived because it couldn't get above the prior day VWAP. It started showing a downtrend—lower high after lower high.
It consolidated, looked like it was going to break out, and was met with a massive amount of selling. It broke back below support.
That was our trigger. We got short at $149.30, using the top of the range at $150.50 as our risk. A nice buck-and-a-half risk. The stock flushed, and we covered at $147.50 for a beautiful payday.
But then look what happened. The exact same reason we shorted it the first time showed up again. The Finger of God. We shorted it again around $150.00, didn't get stopped out, and rode it all the way down to $145.00.
We’ve been destroying this trade on just 300-share lots.
And it wasn't just $SPCX. We did the exact same thing on the $QQQ.
Fat Finger Freddie showed up because the market is rigged, and it went right to the rig price. People were cheering the long trade, but I was waiting for my confirmation to short. The downtrend stayed intact, it broke through the blue line, and we got short.
Once the coast was clear, we bought the $QQQ $705 puts for $2.50.
They went to $5.00.
We doubled our money, and then watched them go to zero later because we already took our profits. That's how good we are.
I actually recorded a video summarizing exactly how these setups played out today. There were about 8 other trades that worked perfectly, and you can see the visual breakdown by clicking the link below:
Click below to watch today's video recap:
It's starting to become almost impossible to believe how well we're trading lately. You have to see it for yourself.
If you’re already inside the room, I’ll see you tomorrow.
If you’re not in here yet, here’s the link to join us.
Kenny Glick | Founder, Hit The Bid
P.S. We shorted $SPCX at $149.30 and covered at $147.50, then shorted it again and rode it to $145.00. We bought the $QQQ puts at $2.50 and sold them at $5.00. Stop trying to use logic in a rigged market. Use the lines instead. I'll see you tomorrow.
