Hunting Ground for Options Scalpers
Earnings continues, Elon sells, and SPY chops and falls.
This last week of the month featured serious tech market participants posting earnings reports and the market both gambling on them and reacting to them. Tesla, Apple, and some others had good earnings reports while Amazon had a mixed reception.
Of interest was the fact that after an extremely positive earnings report, Tesla fell heavily this week. Speculation abounded, and on Thursday it was revealed that Elon Musk sold several billion dollars worth of his Tesla stake to help fund the massive Twitter deal, of which the market press has covered heavily as of late. Thursday the billionaire indicated he had no more planned Tesla selling, and on Friday the stock featured an initial gain followed by an afternoon drop back to below Thursday’s close. The intrigue continues.
As for the SPY ETF, it didn’t offer too much to make anyone feel more confident of a direction. Other than very short term time horizon day traders, SPY was not of much use this week. That is not to disparage day trading, of course, as we focus heavily on options day trading at BlackBoxStocks. However, with major investment banks and significant financial analysts talking bear market territory for the S&P, there is little doubt a lot of buy-and-hold investors are cash flush and ready to buy in. Nonetheless, vacillating between $412 and $429 can provide a certain amount of uncertainty where to begin scaling in. SPY ended the week blood red with pessimism and fear suffusing the land.
One thing is certain: no one worth their salt will attempt to call a bottom. The name of the game is patient observation. The bottom will become apparent after it is in and a confluence of factors begin clearly trending up with continuation and volume. Until then, the market is a ranging hunting ground for options scalpers, both on the buying and selling side of the premium game.
INSIDE THE BOX
As has been the case with recent weeks, our members enjoyed hand-picked flow plays sent to their phones via our app that profited nicely. These included calls on PLUG and NKE. Throughout our various trading rooms, members opened and closed swing trades, and scalped everything from SPX to DWAC, and most points in-between. If it has liquidity and range, there is a BlackBoxMember scalping it for profit somewhere. Just to review, we have trading rooms in the Discord BBS Traderoom, Discord RoadHouse, Discord Small Account Room, and on our main website in the Main Chat area that focuses on flow trading.
Overall, this very dark red week in the market had something for bears and bulls, from short-term scalping to entering swings. Our moderators were busy all week moderating the trading rooms, teaching our educational classes, answering Direct Messages, and generally helping our members find ways to either profit or to reflect and learn from mistakes. Together we grow as a trading community; no one trades alone.