SPX (06/18/2020) - Reversal Short

S&P 500SP

Description

⋅ Jun 18, 2020 12:40 AM

FA
-New unemployment claims will be announced tomorrow.
-Cov-19 cases are still on the rise with Bejing and India in shut down. New world record on daily cases. South American countries are exploding in cov-19 cases
worldometers.info/coronavirus/?zarsrc=130
-Major news about Biden on the newest poll survey could be another factor to trigger the drop.
-FED policies are aiming for long-term recovery, instead of positivity about the current situation.
cnbc.com/2020/06/17/fed-policies-may-spark-a-bubble-all-star-investor-rich-bernstein-warns.html
-FED repo and treasury purchasing remain unchanged.
-Housing/Mortgage application data is positive.
tradingeconomics.com/calendar
-New Zealand GDP dropped more than expected.
tradingeconomics.com/new-zealand/gdp-growth

TA
SPX failed to break resistance at 3157, a reversal took place.
-RSI, Squeeze: bearish
-SPX500 crossed EMA 50,100 and built-in EMA TEST in both 1h and 4h chart during the future market: bearish.
-SPX could retest the 3067 level.

Trading note: Sold SPY 312.5 call at open and bought some AAL puts 06/19 at the closing.

Good luck and thank you.

Comment

⋅ Jun 18, 2020 1:52 PM

Bear trap. Go long

Comments

WTFpattern

⋅ Jun 18, 2020 12:58 PM

I am glad you are back. Your daily post is one of my favorite for quick snippets of the upcoming day.

TheMarketDog2

⋅ Jun 18, 2020 2:23 AM

+ Expiration date is tomorrow