Rough day for the $SPY yesterday. My first level at 750 clearly broke. If we see more downside pressure I will be watching the 725 level. As @alphatrends like to say that will be nothing more than a potential area of interest. Check out this chart I made with @TrendSpider share.trendspider.com/chart/…

It is a great time to talk about cash right now. Specifically how much should you actually keep in your account? This is one of the most personal decisions in all of investing, and most people get it wrong in one direction or the other. Either they're fully deployed at all times and have nothing left when the best opportunities show up, or they're sitting on so much cash waiting for the "perfect" entry that they miss a year of gains. Here's the approach that has worked well for me. I keep somewhere between 10% and 40% cash at all times. The number moves depending on market conditions. It almost never hits zero, and it almost never hits 100%. Let me explain both ends of that range. Why I'm rarely fully invested: Markets can turn quickly. Corrections don't send a calendar invite. The best buying opportunities in any given year are the moments when quality companies are genuinely on sale. These tend to happen fast and without much warning. If you're fully deployed when that happens, you're a spectator. You can see exactly what you should be buying and you have no ammunition to buy it with. That's an awful feeling that's entirely avoidable. Keeping cash isn't pessimism. It's preparation. Dry powder isn't money sitting idle - it's optionality. It's the ability to act decisively when others are forced to stand still. Why I'm almost never all cash: Markets have a long term bias upward. They also have a frustrating habit of climbing a wall of worry for months while everyone smart is standing on the sidelines waiting for the pullback that keeps not coming. We have that kind of market right now. It keeps grinding higher with everyone calling a top, and the people in cash are stick watching their opportunity cost grow by the day. Missing a sustained rally because you were too cautious is just as costly as being overexposed when a correction hits. Both decisions have a price. The goal is to find the balance that keeps you participating on the way up while preserving the ability to press hard when things get cheaper. How I adjust within that range: When the market feels extended, sentiment is frothy, valuations are stretched, or geopolitical risk is elevated I let cash drift toward the higher end of that 10 to 40% range. Not because I'm predicting a crash, but because I want more cushion and more firepower if one comes. When a meaningful pullback has already happened - when fear is high, quality names are genuinely discounted, and the worst of the move looks like it's behind us, I let cash drift toward the lower end. That's when the dry powder gets deployed and the best entries happen. The simple version: Concerned about a pullback? Carry more cash. Pullback already happened and looks mostly done? Deploy it. Market grinding higher with no clear catalyst for a selloff? Stay invested but keep some in reserve. That's it. There's no complex formula. It's just a disciplined, honest assessment of where we are and how much cushion you want. Always stay invested. Always keep some cash ready to deploy. The exact number moves, but it never goes to zero, and it's almost never everything. The investors who win over time aren't the ones who called every top and bottom. They're the ones who were never fully out and never fully in. Always invested, always ready. 💪 What are your rules or guidelines for cash in your account? #investing #cashmanagement #options #stockmarket #tradingdiscipline #cashsecuredputs #thewheel #riskmanagement #optionsincome #patience Not financial advice.

Adding $AMBA to the watchlist today. Ambarella is on my radar for a potential CSP entry and the setup is getting interesting. 👀 What they do: Ambarella is a semiconductor company specializing in low power AI vision processors. These are the chips that power AI cameras, autonomous vehicles, robotics, and industrial automation. Edge AI adoption in industrial and automotive markets is the core growth engine, and this is a name that sits squarely in the AI and automation ecosystem for the long term. Not a software story but a foundational hardware infrastructure play. The fundamental backdrop: Q1 FY2027 revenue came in at $100.4M, up 16.9% year over year, with EPS beating estimates by 10% and gross margin reaching 59.9% which gives them expanding margins on a growing revenue base. Rosenblatt just raised their price target to $120, Stifel is at $106, and the analyst consensus sits at Buy with an average target of roughly $87–$92. That's meaningful upside from current levels. The technical setup: AMBA had a big run up into earnings nearly doubling from its lows to a 52 week high of $96.69. Then it fell roughly 21% after earnings on May 29 on high volume and has been consolidating since. That's the classic setup - strong stock, with a post earnings reset that is now digesting the move. On the daily there's a cup and handle forming - the handle is a bit steep which is why I call it "not quite perfect," but the structure is there. More importantly on the weekly chart there's a golden cross, which signals longer term momentum shifting back to the upside. The key technical level I'm watching is ~$68, where the rising 50 day and multiple anchored VWAP levels all converge. That's a triple layer support zone directly below current price, and that's where I want to sell puts if we get the right entry today. The trade: Watching for a CSP entry within a couple dollars of the $68 support zone as the floor. Well defined risk, meaningful upside potential, and a name I'd genuinely be happy to own at that level. If assigned I flip straight to covered calls and the wheel rolls on. Watching the price action today. Will update if I execute. 🎯 #AMBA #Ambarella #options #cashsecuredputs #thewheel #goldenCross #edgeAI #anchoredVWAP #tradeidea #semiconductors Not financial advice