[Analysis] A relief rally for S&P500 but..

29 ก.ย. 2022

A relief rally for S&P500 but.. it is what it is... just a relief rally.

That does not mean we cannot take advantage of it.

We can play the short-term upside with Call options on overly beaten-down counters.

Meta is a good choice for a relief play.


I personally am holding a short-term call option on Meta. This does not mean Meta is going back to an all-time high, the bottom is in, yada yada. None of that. Meta may do a dead cat bounce to 150-160 level, but once the resistance is reached, I may look for a short position again.

Likewise, you may play short-term SPY Call for a short rally to 380 - 385



This rally was led by the sudden UK decision to resume their PE. They chicken out. They tapped out. This caused the US algo to go crazy as well. Hence a broad market rally.

We have also noticed a sudden drop in the US 10 Year yield after hitting 4%


This suggests a downside in the US dollar. This means bitcoin might be in play again. We do not play bitcoin but we can play crypto-related stocks like Marathon Digital/Coinbase. We are already holding Marathon Digital Call options.


The purpose of playing this short-term rally is to make some profit while our shorts are resting. You may also call it hedging.

Be warned that this rally is NOT sustainable. Eventually, it will create another lower high, and we may hit 3500-3400.

For now, enjoy the upside and wait for a higher price to be short.