Is NOW The Time To Go Short and Buy Puts?
Summary
The hosts discuss the extreme difficulty of trading in the current sideways market, advising traders to sit in cash or use income strategies like box spreads to avoid getting chopped up. They analyze the divergence between market-cap and equal-weighted indices, highlighting that while large-cap tech stocks remain strong, 75% of the S&P 500 is trending below its 50-day moving average. The episode also covers technical indicators like the MACD and moving average width, explains how to calculate option extrinsic value, and demonstrates how to use order blocks for support and resistance on Trad…
Topics discussed
Sponsorships: Indeed and American Express
Market analysis: The difficulty of sideways trading
Comparing bear, bull, and sideways market conditions
Risks of delta-neutral strategies like iron condors
Strategies for buying puts: Delta and extrinsic value
Host updates and the 'sit in cash' philosophy
Introduction to the MACD indicator
Market concentration: RSP vs SPY and big tech dominance
Market breadth: MMFI and 50-day moving averages
Outlier alerts: Bearish momentum and fear/greed metrics
Why trading the Box ETF is easier than SPY
The dangers of shorting the market
Q&A: Measuring EMA width contraction and expansion
Q&A: Calculating intrinsic and extrinsic option value
Light chat: Netflix show and host's chair mishap
Q&A: Recommended TradingView chart settings
Deep dive: How and why order blocks work
Sponsorship: SoFi and LPL on AI in wealth management
Sponsorship: Uber Eats game day deals
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