Last time in this space I said I thought Wednesday trade might test Tuesday’s low area again, and if so it was a buy opportunity in the very short term. That is exactly what occurred. I think the next 1 to 3 days we are forming a market top. I generally hate picking tops, and I haven’t tried till now, but I am going there now. I am already short on PYPL via June 60 puts with a hedge via short the March 1 60 puts (a calendar spread that required zero additional margin). The hedge expires tomorrow and will likely pay me 100% of the 85 cent premium I received for the March 01 60 puts. After expiry of the hedge I will still be long the June 60 puts.

Let me shar my "Eureka Moment" as a trader: The single most important lesson I learned... and why this catapulted me to success as a trader. (I've never revealed this anywhere before.) click here:

Today I put a Diagonal Bear spread in ARKK, long June 55 puts, short March 8, 50 puts, with the stock at 51.30. Cost was $5.60 for the ARK spread. I think this position in ARKK will offer plenty of opportunities to let time work for me by further spreading short expiry options against my long June options as we go forward. 

Other stocks that look vulnerable to me include GOOG and MSFT.  AAPL and TSLA are already vastly under performing. These dents in the market are only going to cause more trouble in the very near future in my opinion. Too late to be long for sure. And I like the setup of the shorts I have. 

Thanks,

Joe