Hubert Senters here.
Got a question from Antonio.
With the stock market soaring to record highs today. Are you looking for possible gap trades or bracket trades? How would you trade this market on some of these stocks? Thanks in advance.
So you’re in one or two places. I went after you. You didn’t trade it all because the range was too wild and it scares you. That’s option one.
Option two you’re either long or your short. Let’s pretend that everybody’s starting basically at the same area. So what I would first do is I would figure out where I think the markets going to go so.
For me, I’ll try to figure out where the futures market are first and then let me go grab a trade station here. Let me shrink down it so we can all see together.
So the first thing I want to do is I want to assess where the markets at to figure out which index I want to trade and then I’ll go in that index and then trade a trade around that.
You’re going to have the same covid place that were once hot or now going to get cold. So if I go at YM then I go okay, YM had a pretty good day. It finish about half of the range that it put in earlier today.
Dow’s probably going to go higher. If we look at the Nasdaq and your Nasdaq like how was the Nasdaq $228 but the Dow was up.
Well, all those tech stocks were working at home. They’re out of favor now like the zooms of the world. They’re go down. There’s zoom going down. There’s PTON, Peloton. Those are all taken the Nasdaq down.
So I would look initially at shorting the ones that are probably going taking on the chin like Peloton and I would do a bracket trade to the down side with a short of about $94.50.
And then if we did Zoom same type of situation. Right now it’s in the cloud but I would potentially short it around $400.
Now, if you’re doing on the other case PFE the potential drug that has 90 percent effective on the covid vaccine here then you can potentially do a bracket trade and figuring out which way is going to go.
Above $42 is the long and below $38.40 is a short. You could also go Rusell at RTY because we rotated from out of the Nasdaq into the Russell into the S&P into the Dow.
That’s how I would approach it and then I would treat the individual stocks individually depending on whether they’re going north or south.
That’s why I always have a list of things on the long side and a list of things on the short because you never really know which way the market is going.
Yeah. It’s got an upward slant bias to it but it could have very well went the other way on this so that’s why you have two lists. And I hope that helps you.
Mark Helweg is doing a webinar Tuesday, November 10th at 8PM EST. ”The Simple Way to Trade These Complex Market Conditions.” This is what he’s going to be covering.
I will HYPERLINK you to the registration page.
Good luck. Hope it helps. Have a great day. See you on the next video.
Hubert.
