SPX
Will be a short summary for this symbol right now, there is only one thing to do currently which is go long.
I dont care what currently happens in the world and the reason why the stocks are still climbing, if its due to excessive money printing by Fed (which is my best guess) or simply information which is not yet public.. the institutions are all buying and right now they are buying more aggressively than before. Our work as traders are to follow what the smart money are doing, and right now they are all buying and probably will continue doing so until there is a very clear reversal with follow through or a climatic move to the upside.
The downward move in June got no instant follow-through and was most likely only a result of a very intensive spike to the upside before, which lead to aggressive profit taking. This downward move probably lead many traders to believe this was the end of a "Dead cat bounce" and more selling were to come. However any attempt to continue this move was bought, and the result was a climbing bullish trading range where bears still could make money but bulls had the advantage.
There was a break of the climbing trading range trend line which probably had traders exit their longs, and new bears to enter on reversal. But again same scenario, there were no follow through and this was a failed reversal setup and a great buy.
Once this climbing trading range became obvious, and these traders excited, it was time for the market to switch phase. What were currently looking at is a completely different type of trending market, where it holds all the signs of a strong bullish trend.
1. There is no room for bears to make money.
2. The pullbacks are very minimal.
3. Every breakout to a new high finds more buyers than sellers.
4. Bull-stops are still intact.
5. It forces traders to enter to what feels like "the top" and chase the price higher.
Summary:
This being said, heres what I will be looking for this week:
Short term:
Buy any attempts to reverse the trade, either if its a failed breakout of the bull trend line or simply tests of bull stops. I will scalp these setups with smaller size.
Long term:
Will patiently wait for the big trade to present itself. Im not expecting, but hoping, for either some bearish news or simply a bearish downward move to line up which scares away the last of the weak bulls and make reversal traders enter who believes this is a "perfect" double top.
If this trade presents, I believe it will be the last entry for a very diabolical up move to come and im expecting it to keep running for many days/weeks, and will look at buying full size.
Good luck out there everyone!