Why This Huge Market Bounce Could Be a Bull Trap

After a brutal few days the market is ripping higher, but chartist Tim Knight is not buying it. On this Trading Charts segment he calls today's V shaped bounce a possible bull trap and argues the damage on the indexes is already done. He was short Meta into its tumble, covered for a profit, and notes its chart has printed lower highs since last summer. Tim walks the Nasdaq and S&P futures, points to the support level that broke and briefly recovered, and says he could be eyeing even lower levels by next week. He still likes his Carvana puts and sees Microsoft as beaten down rather than broken. A self described salmon, he swims against the tide. None of this is a trade recommendation. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Markets rip higher across the board 00:46 Why Tim shorted Meta 01:47 Microsoft saved by fundamentals 02:09 Tim the contrarian salmon 04:00 The V shaped bounce on the charts 04:58 Spotting a bull trap 05:56 Carvana and the 2021 replay 07:31 Meta a pig of a pattern 09:07 The S&P support that broke 09:55 Selectively shorting the rally #tastylive #optionstrading #bulltrap #tradingcharts #timknight #metastock #technicalanalysis #stockmarket #nasdaq #daytrading tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.