This is what I was scared yesterday technology stocks running crazy without any correction. Good I have the clear understanding about the market, that is why I was worried yesterday, but not today.
Today, it is getting corrected, but the correction is a great buying opportunity. I sold lot of small companies where I had minor profits and bought TSLA and NVDA as I clearly see recovery and bull run again. In fact, I had a chance to buy NVDA at $144 today.
Next week, FED is raising rates to another 0.25%. Monday and Tuesday, market may be volatile again, then it goes up slowly.
Put = an option instrument giving you the rights to sell at a certain price called the strike price, the rights would expire on certain date. The buyer can exercise the rights anytime before expiry date.
Shorting a NVDA Aug 18 $135 put means you sell a put option that would expire on Aug 18 that would give the buyer the rights to sell you 100 NVDA shares at $135 regardless of what price it is traded at.
I believe youāre an engineer and hence good at maths, should understand the implications.
Just update: Nasdaq futures are way down again. Looks like nasdaq will come down heavily next week, while DOW and S&P is going up. People say it is rotation, market makers are profit taking and moving to next sector.
I do not know , but some people are posting like this in reddit. Need to watch further!
Interesting Apple is down more than facebook and Amazon. Apple is so conservative even Warren āI donāt invest in techā Buffett bought a boatload. Its PE is very low for a tech company.
IMO, pure guess work, it is likely go down Monday onwards. Market may come up in between one or two days next week, but will eventually go down as the YTD growth is 20% or more for may securities.
Whatever happens to Nasdaq will also catch up with DOW and S&P, at least next 3 to 6 months we have some temporary correction I expect.
As of now, nasdaq futures at minus 143 (bigger than friday 113)
I am not expecting a downturn or correction, but definitely temporary down very possible.
Here are the negative scenarios present in future six months. (Even though I include politics, but focus is on investment).
For sure, Jun 15th rate hike 0.25% going to happen and FED will not raise rates until Dec 2017, waiting for economy to respond uncertain period.
Sep congress has to vote for extending funding so that government can function. This is going to be difficult task.
Trump wants to cut taxes (revenue to government) and increase big expenses (Defense). Congress will find it tough as it needs Trillions of dollars money printing which Voting will not happen.
Trumpās tax cuts are not going to be reality in 2017. Added with it, so far Rate hikes results 1% (four rate hikes including jun 15th) that impacts bottom line of many companies.
All these results future temporary down fall is imminent. I may be right or wrong.
then AMZN or TSLA