It seems like when a stock it on a tear everyone thinks the leadership is great. When it hits a rough patch, now everyone is a critic. Is the success dependant on a key man? And if it is, what will fall with NVDA?

The AI bubble has taken some big hits and hasn’t really burst yet. Significant pressure on how massive debt used to fuel the growth is being managed, questions about how a changing political climate could impact massive AI interests.

What does this all mean for us traders trying to grab steady income out of this market blender?

Let’s look at ways to adjust to the escalating uncertainty and check in on our trades for this week.

When things get absolutely nuts in the market, finding the smart, safer trades can feel impossible. One trade has become known for his ability to spot the “outliers” that flow beneath the headline drama and churn out consistent wins. Keith Harwood is showing how he is doing that to a small group of traders live. If you want to see it, here is the link.

The NASDAQ is the canary in the coalmine for this market with so much leaning on the AI trade. We can see that the QQQ that tracks the NASDAQ is still in a broader down trend in spite of a fight to reverse that slide. The bounce back after the recent plummet ran out of steam in the face of the latest drama.

Looking at more SQQQ calls is a solid way to position for a bigger drop. But just like we did back in September, we are going to want to look at expirations farther out to give this time to shake out. The challenge with expirations farther out is that the premium gets steep and it can be tough to find liquidity. If there aren’t enough people trading it, it can be tricky to get out even if it is a winner.

The March 15 50 calls are at 4.50 today. This is another to keep an eye on today and see how the market is consuming the NVDA story.

Our XLF Calls continue to creep up and show more potential. They are definitely a hold. FCX didn’t give us the signals we were looking for to enter that trade but it is definitely one to keep watching.

Keep learning and trade wisely.

John Boyer

Editor

Market Wealth Daily