Title: Navigating Market Volatility: Insights from Inside Edge Capital
As we navigate the ups and downs of the market, it’s crucial to stay informed and prepared for any potential scenarios that may arise. Todd Gordon, the Founder of Inside Edge Capital, shares his insights on the recent market trends and how he is strategically positioning his portfolios to weather the storm.
After a turbulent summer, stocks have shown resilience but are now facing overhead resistance. Todd runs four equity portfolios, with one of the most actively managed ones being “Active Opps.” Following a challenging period in July, where all positions in Active Opps were stopped out, he re-entered the market with six strong names and implemented a put spread hedge to protect against potential downside risks.
Analyzing the technical aspects of the market, Todd highlights key resistance levels that investors should watch closely. From moving averages to Fibonacci retracement levels, he identifies a zone of resistance in the Nasdaq 100 Index ETF ‘QQQ’ that ranges from $469-$472. This zone could serve as a potential turning point for the market, with a possible retest of the 2021 breakout level at $406 if the rally fails.
To hedge against a potential downturn, Todd purchased a QQQ put spread expiring on August 30th. By buying the $420 puts and selling the $410 puts, he created a favorable reward-to-risk ratio to mitigate any downside risks while staying bullish on the market.
At Extreme Investor Network, we believe in providing our members with unique insights and strategic approaches to investing in today’s volatile market environment. By staying informed and prepared, investors can navigate market uncertainties with confidence and achieve their financial goals.
Disclaimer: The opinions expressed by Todd Gordon are solely his own and do not reflect those of Extreme Investor Network. Before making any financial decisions, we recommend consulting with a financial advisor to assess your individual circumstances. Click here for the full disclaimer.