Q2 earnings season is kicking off, and tech stocks are finally beginning to show weakness. Investors are beginning to pull profits on some the most parabolic tech stocks like tech powerhouses Amazon AMZN and Microsoft MSFT.
The Nasdaq 100 had a hell of a day with traders pushing the index up over 2% then ripping it down over 4%. Traders & investors were loading up on (relatively cheap) QQQ QQQ puts this morning which led to the eventual sell-off in the afternoon.
The markets are hedging their positions for the highly uncertain Q2 earnings, and so am I.
I sold out of my QQQ puts on close. Hopefully we will all get a chance to rebuy these puts tomorrow on a bounce.
I’m looking at August 21st expiring put options for a hedge that will get my tech-heavy portfolio through earnings.
The closing performance gap between the Nasdaq 100 and the S&P 500 is a signal of an impending reversal.
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