📅 *Markets Wobble as Powell Warns – Playing Defense
Indices finished in the red on Tuesday. Nothing dramatic — the S&P and NASDAQ each slipped around 0.5% — but Powell’s comments on stubborn inflation and “high equity valuations” rattled sentiment just enough to remind traders how stretched things have become.
The concern here is positioning. With the put-call ratio showing everyone piled long, and key cycle dates approaching, I’m trimming risk and going into defense mode through month-end. This isn’t the spot to chase; it’s the spot to protect.
I’m not eager to short the strongest leaders, but I am fading weaker names. That’s why I’m targeting NOW with a call credit spread. At the same time, I’ve put on a couple of selective longs, but sizing is controlled.
And Nvidia’s $100B OpenAI deal? Honestly, it feels more self-referential than groundbreaking — almost Ponzi-ish.
🎯 Trading Plan
- **EWU (Long Calls)**
A modest upside play with defined risk, keeping exposure light.
- **REVG (Long Calls)**
A longer-dated call option to capture potential strength without rushing into short-term volatility.
- **NOW (Call Credit Spread – Hedge)**
This defined-risk bearish spread leans against resistance after a failure at the 200-day moving average.
$Ishares MSCI United Kingdom ETF(EWU)$
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