As part of my ongoing campaign to accumulate beaten down stocks on big support levels in case there's a new bull leg due to start, buying FB and will also add if it goes a bit lower.
If we hold the 76 fib we can see a bull move.
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This was a good idea at the wrong time. Which is the same as a bad idea.
Anyway, would be target hit. Got stopped out long before it turned.
Seems like you've switched to being bull on a lot of things for the time being. Do you think we see a new high on things like SPY or do we stop short of a new high at the supply zone and come down?
holeyprofit
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@Ronar1, I think there's significant risk of there being a short squeeze in the indices and if there is we'd be due parabolic markets into 5,500.
Might not happen but certain is not something I want to be on the wrong side of. I know how to adapt quickly to a break to the downside and I am still trading long/short on a day to day basis pending the current action. But right now my mind is firmly towards squeeze risk.
One thing that concerns me is it seems like everyone in the world sees the head and shoulders on the SPX weekly chart. And I don't think the crash will be as well forecast as it currently is. You'll have seen me trading many head and shoulders and it go parabolic from the break of that into the real high. What I do not want to happen is people following my work to get nailed being just a little too early and not be able to trade the better opportunity higher. twitter.com/holeyprofit/status/1490817128819216385
I am bullish until further notice (Further notice would be a breaking of the big support levels).
Ronar1
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@holeyprofit, I'm thinking of some put positions on SPX once it does a pullback from the current move down. 4500 has been a vital point and breaking below it after the past week seems like a good opportunity if it acts as resistance on the next upswing.
holeyprofit
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@Ronar1, Understandable. I can see the bear case to be made, but we currently failed to make the breaks I forecast and hit a lot of trailing stops/targets on shorts from earlier on. At these prices I prefer the RR long but will quickly revert to short trade plans if the supports break.
Trading off the 4500 - 4650 zone, I'd be aware the exit signal for this is typically the breaking of the head and shoulders.
Ronar1
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@holeyprofit, Sounds good. I'm mostly bearish currently because the double top we just made this week actually looks like a truncated 5th wave on a smaller time scale which would fit with the current move being a corrective B (or wave 2 of a major crash) wave of the Jan drop. Especially since the supposed B wave stopped right at the 0.61 of the Jan move down.