Netflix & China Rally
Positioning matters and the long China trade last week and this week was the right move as a speculative position. They want to inject $300B or so and it probably leads to other issues which we’ll worry about later. Is it enough? Who cares is the answer.
Unless you’re reading this and running a $100mm equity book that doesn’t matter - what matters is: CAN YOU TRADE IT? While others are reading call flow, measuring risk-reward ratios and generally just talking about trading we’ll be here actually doing it - and we did.
Coming into this week China was something to focus on - in fact last week an AST Alert was issued on BABA 0.00%↑ for this it’s just that this week it was also good for shorter-duration calls which paid off tremendously.
The short-term trading (day trade to 10 day) is ideal for cash flow and it’s what propelled my returns in one book last year - and pretty much, for the last 12 years running long volatility strategy as one of the approaches.
Just like the big TSM 0.00%↑ win last week this adds to a really good January to start the year.
Crude oil is bullish and the EIA report tomorrow, if a draw, propels that into $78-$81 for me which is also idea for the energy longs.
For new readers, the process that I use is cross-asset class trading (if you have not realized it yet) - I’m not sector, product or asset class specific: THERE IS SIMPLY OPPORTUNITY TO MAKE MONEY - if that is, you have framework that allows you to do so.
Part of that framework is laid out in a long post here
A similar one is laid out here.
Tonight in the Premium Video I am covering:
$S&P500, Nasdaq, Crude plan for tomorrow
2 Continuation trades
A lesson on trading vol crushes post earnings with NFLX 0.00%↑ as the case