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- My Next LEAPS Opportunity For 3-4x. Market Breakdown.
My Next LEAPS Opportunity For 3-4x. Market Breakdown.
Hey Options Trader,
The market is at a standstill. The bulls won yesterdays battle after the FOMC meeting, but bullish continuation seems to be stagnant. Are we headed back down? I will cover a few key levels and an opportunity that I plan on taking advantage of this week.
Here’s what we are covering:
$QQQ ( ▼ 4.32% ) and $VIX ( ▲ 27.15% ) - Key Levels
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My Next LEAPS Opportunity
Magnificent 7 Breakdown
QQQ and VIX - Key Levels
QQQ seems to not have the momentum it needs to shoot above $500. I believe going forward this will be a slower recovery and not a V - shaped recovery as we had in August 2024.
There is a high likelihood we will be rangebound on QQQ from $466 to $484 for the next couple weeks until we see outflows of the Magnificent 7 stocks, slow down from global investors (META, AMZN, AAPL, etc).
If for some reason we do break out above $484 and close there on the day, then the $500 level will be approached quickly.
VIX needs continuous closes below $20 to signal that the fear is over and buyers are stepping in. We saw a close below $20 yesterday and may see one today as well.
Overall, I think the market is healthy, the Federal Reserve has a great handle on inflation as the data proves, and sellers are exhausted at this point. Two rate cuts are happening this year and Jerome Powell also stated, while the short term inflation is being affected by tariffs, long term projections see little to no effect on inflation.

Rangebound from $466 to $484

VIX within zone of greed, but peeping back up to zone of fear
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My Next LEAPS Call Option Opportunity
Sofi is a stock that has wonderful valuations, high profit margins and a lot of growth opportunities, especially in the coming years with lowering interest rates.
I has been very beat up from the all time highs of $18 that we saw a couple of months ago.
If we get a gap down tomorrow to $12 on the stock, I will be entering into a long term LEAPS call option position (1-1.5 years out in expiration) as I believe we have seen the bottom on this stock.

Sofi MACD bullish crossover
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MAG 7 Breakdown
The $MAGS ( ▼ 5.11% ) ETF has seen a breakdown of -22% and I believe we could potentially see one last flush. This is the ETF I use to track the top 7 stocks in the S&P 500. Recently we have seen the largest outflow of international funds from these top stocks as more inflows are going into the European and Chinese markets.
This is another reason the overall market has taken such a beating with seeing weaker then expected recovery.
Once we see this ETF start to pick up steam, then we can expect the overall market to rebound. The absolute low could be $42-$44 dollars on $MAGS ( ▼ 5.11% ) .

-Ryan