The last post I mentioned was well planned. We broke thru resistance 1 $760 and likely on the $770 resistance 2. We were not wrong opening a short position in the market even though the put is not yet profitable. We know that timing the market is not wise and patience is a virtue. You may be down 50% on an option position but given time, you can have less loss and more chance of winning the trade. Hence I stay away from 0 DTE or anything less than 14 days when time permits.

The put that I bought was a hedge, a security mechanism for my portfolio.

I did not close those positions and will likely keep it open for a few more weeks.

There is not a promise that the market will dip in the coming days as we know that markets can continue the uptrend even if RSI is high. We have to play chess or poker in making money.

We see that the market likely reached high due to the earnings of some big names like $PLTR, $AMZN, and $MSFT.

Remember the earning sentiment will likely fade very soon.

Also the speculation that the Strait of Hormuz and Iran tension ending is spiking markets and the news will fade eventually. Earning reactions have not been splendid at all for some smaller cap companies.

The gap to $760 can happen if macros do point bearish.

Let's reflect what we did today. We were very cautious today and our puts made money. We made around $2,700 something today on our hedges. We notify our subscribers that the sector heat map did not look confident enough to stay at $777. We backed of our longs that we opened a few days ago.

We are already up $4,500 so far in the 3rd trading day of August. We need to be more conservative moving forward. We allocated our other 25% equity into cash. We sold out of $BE, $AMZN, and some AI names for a future potential opportunity in this stocks. An experienced trader never underestimate the market.

What I will be doing tomorrow is avoid the recent huge buys in AI companies. I am keen and predicting an opportunity

in $SPCX. I feel a positive aura in this company. I may consider putting $30 racks in this in the coming days if the tape reads good. Will my $30 racks turn to $45 racks. We will see but I am not buying more yet. I only have 100 shares on this at $109.60 that I bought at close today.

Good luck to anyone following me.