Samwise Quick Reference Handbook
To streamline our daily blogs and conserve space, we’ve organized key resources into a convenient, collapsible dropdown menu below. A sort of Quick Reference Handbook if you will -- as our friends in aviation might call it. By clicking the menu below, you’ll have qu...
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The $600 test is going to come soon given then end of the segment is nearing?
Sam, if QQQ closes at or below 577.60 which is a evening star candlestick pattern. Does that invalidate the QQQ’s reaching $600?
Not quite. One bearish candlestick isn’t enough. There needs to be a series of negative candlesticks. A big reversal could do some damage.
Think you alluded to it in the comments Sam, but would reaching $600 also set up the 1% trade? Especially if it’s late next week when we’re deep in the rally/segment? I assume we’d be deeply overbought at that point as well?
Yeah, we will put that trade on as well. But that will largely depend on where the QQQ is trading at the time.
There’s not going to be a 6th push to the upside.
The segments are significant moved ups. The 4th segment took the QQQ from $523 to $574 for example. That’s $51 or just about 10% which is standard.
The 5th segment that we’re currently on went from $551 to $583 or $32 (6%).
Chances are after this one ends, the QQQ likely peaks between $583 to $600 directly ahead of correction.
It’s not going to peak at $583, pull-back 4% to $558 and then rally to $600. That’s not how things play out in the market. The momentum isn’t there for all of that’s.
The next time the QQQ peaks and pulls back 4% from its highs, it will be during a correction.
Hello Sam, Will you be strengthening NVDL during the correction? If so, how much?
Not sure how much. It really just depends on the situation. It depends on options pricing and a variety of other factors. We might give up trading the NVDL entirely because we can’t hold it through corrections. So that’s the biggest issue. It devalues over time. That means going long the NVDL in corrections and selling it during rallies.
With leaps, we can just hold them. So we may just buy leaps on the next correction over the NVDL. Generally speaking, we limit our Nvidia position to 25% of the portfolio overall in the LEAPS portfolios (Arryn, Lannister & Stark).
can the X80 to X00 principle be applicable to nvda current price?
or rather the 10s mark makes more sense to nvda (xx8 to xx0)
Applies to all stocks too, if you remember this was the basis for evaluating NFLX several months back, it was around $850.
First Name is right. It applies to everything. All securities. Stocks, indices, markets. It’s a psychological driver.
If it can happen in an entire index that has potentially 100’s of stocks involved, it can happen at the individual stock level 100x easier.
So yeah it goes on across the board. All stocks. It happened with Nvidia. Nvidia peaked at $970 a share on its first attempt at $1,000 pre-split.
QQQ fading