The market barely blinked at the hottest PPI print since 2022, and oil’s pulling back while bonds are still screaming and Nvidia earnings are the only thing anyone cares about tonight.
Meanwhile, I went on the Schwab Network this morning and walked through something that probably looks insane on the surface, which is taking a bearish position against a stock that just ripped 82% in 12 months and went parabolic in the last 30 days.
I broke down three defined-risk spreads I’m working right now, including the freight train I’m willing to step in front of with a $3.15 debit.
Here’s what’s inside the replay:
→ Why I’m bearish on an old-tech name that’s suddenly trading like it’s 1999 again, running from $90 to $120 in what looks like a straight vertical line on the chart.
→ The health care play that failed to break a major psychological level and is now showing signs of momentum fade, plus the June put spread I’m using to take advantage of what could be a sharp reversal after a 49% run over the last year.
→ The athletic giant that’s down 70% from all-time highs and just found what might actually be a legitimate base of support, and the bullish call spread targeting a bounce back above $45 in the next 30 days.
→ The one thing about today’s muted reaction to inflation data that has me on edge after three decades watching this market.
→ PLUS the real reason I think we’re seeing money flood into names that haven’t mattered in years, and what it tells me about where we are in this spending cycle.
To your success,
Don Kaufman
