A Strong Rebound Is Not an All-Clear
What caught my attention in Thursday's session was not the closing colour of the indices, but their recovery from the early sell-off while bond yields kept climbing. That is resilience worth noticing. It is not the same as a clean bill of health. These are my observations and plans for review, not a record of trades I have executed.
I find this kind of session useful because it challenges an easy assumption: higher yields must immediately mean lower share prices. Markets can absorb bad news better than expected. But I also do not want one strong intraday reversal to make me overlook weak breadth, struggling transports or the pressure from a firmer dollar. My takeaway is to stay open to good long setups without assuming the broader risks have disappeared.
TGTX is one chart I want to examine closely. The attraction is the combination of price strength, improving momentum and squeezes across several timeframes. Potential short covering could add fuel if the breakout follows through, but I would treat that as a possible bonus, not the entire reason for a trade. I also want to avoid collecting several similar healthcare ideas and calling that diversification. Choosing between attractive charts can be more useful than adding all of them.
EMBJ offers a different setup to study: a pullback toward its moving average, followed by a stronger close, with constructive higher-timeframe momentum. What matters to me is whether the entry still makes sense when the market opens. A chart that looked well positioned at the close can become much less attractive after a gap. I would rather let an opportunity go than chase it simply because I liked it the night before.
DHT brings a different lesson about structure. The bullish bounce is interesting, but the option premium matters too. A call spread is worth comparing with a straight call when implied volatility is elevated. Selling the higher strike can reduce the debit, while also capping the upside. I need to be comfortable with that exchange rather than choosing a structure only because its upfront cost looks smaller.
For management, HNGE is a reminder that patience needs a condition. Holding while watching a contested support area is different from deciding to wait indefinitely. I want to see price reclaim the relevant levels and momentum improve. The weakness in gold and long-duration bonds also reinforces the value of reassessing a setup when its environment changes.
I am keeping a QQQ hedge in the planning discussion, while confirming the exact contract before considering any order. My focus for the next session is selective entries, sensible structure and a clear reason to stay in—or step away.
Options involve substantial risk and may not be suitable for every investor.
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