Last week the stock market had 1 clear trend: FOMO in the morning, wrecked in the afternoon. With the exception to options expiring in the afternoon. Today, we are running a test position to see if that trend is continuing or if the market has legitimately reversed.
Some warning signals remain, the VIX continues to make higher lows and higher highs. Thus the whiplash in the stock market continues. NVDA short continues to perform well. The test position is small, we want to see if our strategy is working. While figuring that out, we use a small amount of capital. If the strategy does end up working through the week, we can take on larger positions, and always add to winners. If it does not work, then we risked very little capital with tight stop management. This prevents massive damage to your account equity, which is what we care about long term.
The test stock position we picked up was ⬇️
