The S&P 500 Is At All-Time Highs... I'm Shorting It!
In a Nutshell
Day trader closed S&P 500 short positions for $8,700 profit before market close at new all-time highs, while FOMO trades on Western Digital and MSTR generated smaller profits of $500-$700. The video warns against using leverage near all-time highs and highlights the disconnect between record stock prices and deteriorating economic indicators including record trade deficits, rising foreclosures, and poor bond returns. Fed minutes tomorrow at 2 PM could trigger a pullback at current elevated levels.
These notes were generated by AI and may contain inaccuracies.
S&P 500 hit new all-time highs. Short position closed for $8,700 total profit on the day with no overnight exposure. Initial short position generated approximately $5,000 in profit. A second short position opened at the retest of previous highs generated an additional $3,700 profit. Both positions were fully closed before market close.
Western Digital was not traded as part of the original plan but entered as a FOMO trade. The Toshiba news released on Friday caused the initial selloff from lows of 396. The stock recovered 6.4% from lows to highs. The strategy targets capturing 2-3% of moves rather than attempting to capture full moves. Yesterday's gap up was followed by a 2.2% selloff from highs to lows. Both long and short sides were traded on the position. The anticipated full correction did not occur yesterday but happened today, confirming the FOMO nature of the trade. A 7-12% move was missed by closing the short position daily, but risk management prevented holding through potential gap ups at unfavorable 1:1 risk-reward ratios.
NBIS position generated $700 profit on a 7.5% upward move. The position was fully closed. The profit was considered insufficient relative to capital deployed. The setup is identified as an overbought reversal. The position remains on the watchlist for potential re-entry if price action confirms the setup tomorrow.
MSTR was shorted as an overbought setup and sold off into the lows. $500 profit was generated. Shorting MSTR has been paused until a more significant selloff occurs. The stock has been strongly bullish, requiring respect for the prevailing trend.
S&P 500 reached new record highs. Market participants are invited to share whether they believe the market will continue higher or view current levels as irrational with potential for sharp correction ahead.
Leverage should not be used at overbought levels. Markets always experience pullbacks. Using leverage or margin at elevated levels risks margin calls or liquidation during pullbacks. Trading should only use capital that can be tolerated during recovery periods.
US bonds posted their worst 10-year return in history. US trade deficit surged 13.7% to $105 billion, reaching a 17-month high despite tariffs. US home foreclosures increased 42% year-over-year. The stock market is heavily influenced by AI companies and does not represent average American economic conditions. Many well-known companies are falling behind despite AI sector strength.
Home foreclosure situations in Arizona, Southern California, and Texas may present investment opportunities. Properties with equity but owners facing payment difficulties may be considered for purchase. The arrangement requires mutual benefit where the seller can catch up on payments and potentially receive proceeds from sale while the buyer acquires the property. Instagram is the contact method, with verification confirmed on the account linked in the description.
Fed minutes report scheduled for 2:00 PM Eastern time, approximately 2 hours before market open. Caution advised at current all-time high levels for both NASDAQ and S&P 500. Markets will be monitored for pullback opportunities.
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