Pretty gnarly drop in the equities today. Who else caught the move down?
Little tip when markets are trending in one direction or the other, look for divergences! This trade was a quick in and out, and was an excellent setup.
To explain simply, you have the initial drop in price, we re-trace back up a bit making a lower high…
BUT, if you look at the oscillator at the bottom (TSI) it’s showing a higher high. This is a textbook hidden bearish divergence… These are great ways to catch trades with the trend without entering blindly.
I waited for the sell signal and grabbed $691 SPY puts, and grabbed over $4,000 today.
This strategy is something I’ve been trading for over 5 years now, and has absolutely changed my life. Look up divergence patterns, give them a shot, you won’t regret it.
Hope you guys have had a great week so far, let’s do it again tomorrow ✊