Hello, I hope you all are having a great Labor day.
Last week I shorted TSLA at 487 and AAPL at 130.8. My original plan was to use a much larger position size and hedge by going long QQQ. However, since the stocks gapped up, I was scared and instead took a half-sized position and didn’t hedge with QQQ. You can see my original thoughts and trade ideas in last week’s posts.
I’ve been looking at pyramiding into these trades – meaning I add more to the position and lower my stop down to keep the risk the same as before.
I’m still looking for the ~60% correction (target near 200) in TSLA. If I do pyramid in, I will be doing so on a rally upwards and lowering my stop to near all time highs for these two stocks.
Daily chart of TSLA below:
Daily chart of AAPL below:
On a final note for the broad market, I expect volatility to be drastically increasing over the coming weeks.