Overnight Momo - Friday (4/04/25)

What I’m Doing In Markets

Well well well, quite the interesting day it has been. If you read yesterday’s newsletter, you know I was “calling for this”. I mentioned how I assumed we would have good follow through overnight on the short side, and then a first move down for a potential capitulation style trade. The overnight short on $AMD worked well, though, the capitulation style trade (long) has been good, but not great.

Nonetheless, I am long $AMD/$AMDL overnight and was buying this morning. I wish we would have closed in the top of today’s intraday range (3.90+ for $AMDL) in which I would have added even more, but I digress.

Due to us still being in a trending down tape (3/3 indices are 1% or more below the 9 day), I do feel the need to hedge against this AMD exposure on the long side… As a result, I am taking some QQQ short overnight equally weighted against my $AMD/$AMDL long. If I am being honest, I prob should be short $QQQ and a few others and ditch the $AMD long, but I’m not really willing to miss the potential of a gap and go come Monday morning… Does feel a bit stubborn on my end, but is what it is.

INDICES READING:

>=2/3 indices are trending up = Focusing on overnight longs

>=2/3 indices are trending down = Focusing on overnight shorts

>=2/3 indices are range bound = No overnight trading

*Highlighted bold is where we are at in the market.

*Documentation explaining what this reading is and my overnight momentum trading system: Click Here