Is A Bear Market Starting? The Truth Revealed. Is Palantir Done?

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Hey Options Trader,

I know times like these could be nerve racking. The market is down, the portfolio looks worse than it did in December of last year. Im going to give you the run down on what exactly is happening. I will also be sending out a newsletter tomorrow as usual for Wednesdays.

Here’s What We Are Covering:

1. The Market Meltdown - Is the beginning of the end?

2. Palantir - My Thoughts

The Market Meltdown - Is this the beginning of the end?

The S&P 500 is currently down -5% from all time highs. Typically a real correction is when we reach the -10% mark like we did last August, as you can see down below.

The real question is, are we headed there?

I believe, we are not going to see a bear market or recession anytime soon. Could we get a -10% dip on the market if tomorrow’s CPI (Consumer Price Index - AKA inflation) data comes in a little hotter then expected? Yes we can, but I don’t believe that’s going to happen.

Historically when we see dips in the market with REAL FEAR, the VIX will be well above 20 (it went to 30 then 67 respectively last August) and the HEATMAP below would be all red.

The VIX got to a high of 21 yesterday and the Cyclical stocks (defense, energy, telecom, industrials, etc) were up big!

This tells us that Institutions are simply re-adjusting their positions for the year as less interest rate cuts aren’t going to benefit megacap tech stocks as much. Will they still go up, yes! By how much? that will depend on tomorrows data.

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Palantir - My Thoughts

Palantir is a great company and the fundamentals haven’t changed. Unfortunately because it is a high beta stock (highly correlated to the market) it suffered worse then others yesterday and today.

I took advantage by selling some 55 strike and 57.5 strike cash secured puts for mid February.

I also may get assigned for the first time at $67 and $70 which i’m actually excited about.

I filmed a video talking about price levels and where I see it going.

I will keep you updated tomorrow…

-Ryan