everyone is expecting spy to hit $400 this week, but... we're approaching a very important algorithmic target at 397, expect some strong volatility in the days ahead.
I actually think that we'll pull back a tiny and then hit 4200-4400...it's never what everyone else thinks...if the market anticipates a pullback, it's not yet time for pullback, that's just how these exchanges and patterns are set up. What sucks is that BTC and S&P500 trail the same pattern...BTC is so overbought but will hit around 52k and if that's the case, we got some to go on S&P500. My question is, what is everyone's strategy if the pullback is 38.2% which is the typical pullback for wave 4. I'm going to pounce on paypal when we drop to 155-197 level even though my entry was much lower, probably buy in another account instead of consolidating to go up to wave 5 separately, then GOLD which has been correcting...what else except for VIX are people buying into to invest in inverse set ups?
Eloquent
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@cyberluck, qid, spxu, sqqq, uwm, uvxy, vxx to name a few (equity is safest, but could scalp intraday moves on some weeklies as well) ~ gold\silver miners are another idea, feel like they could be very bullish while markets correct.
1000% agree with you, the reason why we aren't going to sell off yet is because everyone and their uncle is bearish. mm needs the majority to lose, and that is precisely what is going to happen as bears slowly capitulate with these slow sideways grindy movements. kinda hard to predict a top in this artificial setting, but we try our best to make it work.
i agree with the btc throw-over to 52k idea as well - followed by capitulation down to around 38~40k.
abigreen
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i guess i share your idea. last week just didn't feel right. the move up felt to good to be true. this may be a bull trap. I started to load up on VIX, hope I'm not to early.
Eloquent
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@abigreen, it's less of a trap, but more of a cyclical kind of move. we will hit 400+, but not yet.
i think you'll be okay with the volatility play, especially into friday.
good luck ab, hope it works out for you.
also just to add, that move on friday was purely from the darkpools. haven't seen transactions that large in quite sometime.
there is a chance we simply rip through 400 and rip the bears a new one, but i have a very ominous feeling that we're going to go down hard.
@Eloquent how does one find whether moves are darkpool driven or not?
Eloquent
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@Money2020_ET, there are services out there which permit you to view live darkpool transactions; i can't drop a direct link in here, but check out 'flowalgo' or 'blackboxstocks'.
Petrichor_
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@abigreen I loaded up last week too (before friday I believe was too early) and I’ve been anxious about it since the recent movements up. I’ve been expecting a drop to start wave 4 down as well for a couple of weeks. Good luck! I hope this week is the week. I wish the dollar would gather some strength as that would be more reassuring.
jvc91994
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@Eloquent why do you believe that the dark pool sales would make the price drop?
Eloquent
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@jvc91994, i didn't say that the dark pool sales would make it go down, i just mentioned that there was some unusually large purchases on friday which i haven't personally seen in quite sometime.