S&P 500 Pullback Today, Is Fear Rising Again?

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Hey Options Trader,

The market took a healthy dump today with SPX down -1.5% and QQQ down -2.5%! Could this be the beginning of another big pullback like we saw in August?

Here’s what we are covering:

  1. Nvidia Earnings Next Week - My Livestream Party

  2. VIX - Fears Arising

  3. QQQ - Where is the market headed next?

$NVDA - Nvidia earnings on the 20th

Nvidia is set to report after the market close on Wednesday the 20th. I will be hosting a livestream to go over results and where I think we are headed next.

Today I took advantage of the pullback again and bought 100 more shares…upped my position to $150k.

With Nvidia P/E ratio trading at the lows when you look at the past 4 years, I truly believe they are undervalued at this point.

Also Elon Musk just announced…

This confirmed my thesis of purchasing more shares today. Im also leaving them uncovered as I believe NVDA could rise to $170 in a heartbeat.

Downside risk i’m placing between $125 and $135. Upside Risk between $160-$170 after earnings.

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VIX - Are fears rising?

We saw quite an uptick in the VIX today trading as high as 17! But keep in mind, we were trading at 23 leading into the election and the market was making all time highs.

I believe this is just a quick spike and reversion to average fear, which historically is a perfect time to take advantage of opportunity.

We could see a continuation on Monday to the $20 level, so keep some cash ready to deploy.

$QQQ - Are we headed for a bigger pullback?

Leading off from what I said about VIX, I do think this will be more of a minor pullback. I don’t think the fear is actually here as stocks such as $PLTR were up 8% today. The money is rotating into the hype stocks and the ones that have been beat down such as AAPL.

I purchased 3 $480 LEAPS that expire in 427 days as i’m confident we are headed much higher in the long term.

If we break the trend line $485 could be the lowest we see.

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I will see you next week on Monday!

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-Ryan