Palantir DOWNGRADED, Nvidia Breaks Top Bollinger Band...Is This It?

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Hey Options Trader,

The market had a nice leg up today. $NVDA joined the party by nearly breaching all time highs. $PLTR and $TSLA struggled to benefit. Is the market setting up to have a bullish week? Let’s talk about it.

Here’s what we are covering:

1. $QQQ and $VIX - what’s the status on the market?

2. $NVDA - broke the upper Bollinger band, is this bad?

3. $PLTR - Downgraded by Morgan Stanley. My thoughts.

$QQQ and $VIX - What’s the status on the market?

$QQQ is currently trading in the middle of the range and the middle of the Bollinger bands on the daily timeframe. The chart looks more bullish than bearish to me as we have formed solid support around the $510 area.

If $VIX goes down to $12-$13 we should expect to see $QQQ back at all time highs. We may get this in the next couple weeks so position yourself accordingly on the stocks you are bullish on.

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$NVDA Broke The Upper Bollinger Band! Is this bad?

When a stock breaches the upper Bollinger band, there is definitely more risk to the downside than the upside. However, there are instances like this where Nvidia has a lot of support down below.

I want you to look at the chart below and you will see a candle that breaks way past the upper Bollinger band back in May. What happened after?

I think this is round number 2 for Nvidia.

The point of the story is that, you have to take indicators with a grain of salt. Just because a stock breaches an upper Bollinger band in a Bull Market with natural upward drift, does not mean it is headed back down.

This is where fundamentals, the economy, and overall sentiment have to be factored in.

I took profits on January puts and rolled out to February to collect more premium on NVDA. Im still bullish.

I still have 400 shares + 5 LEAPS call options as well.

Palantir Downgraded by Morgan Stanley

Headlines are meant to scare out weak hands so the filthy rich and savvy retail investors like us can get in. I’m mega bullish on Palantir and I’m glad this “downgrade” came out. This keeps PLTR in a longer consolidation phase which is better for upward momentum. We can’t go straight up forever.

If we come back down to $70 or lower. I will buy more LEAPS. I don’t think thats going to happen though. The RSI is rarely ever in the 50’s. Every time that has happened in the past, it was followed by a massive rally.

I still have 6 cash secured puts at the $67 and $70 level and 15 LEAPS call options.

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See you Wednesday!

-Ryan