Still in a bullish trend Long

S&P 500SP

Description

⋅ Dec 20, 2021 5:43 PM

When we see a moving average with an upward trend with higher highs and higher lows, the bull trend is confirmed.

Every test of the moving average should be seen as a potential buying opportunity, especially when adding from a long-term perspective.

We also see a test of September highs as support at the same level.

Risk-reward-ratio is over 3 when targeting current all-time highs.

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For people wondering about the Santa Claus Rally:
The trading days are 5 days of 2021 and the first 2 trading days of 2022.

Comments

orange369

⋅ Dec 20, 2021 5:49 PM

lol... catalyst? are you buying now?

dorfmanmaster

⋅ Dec 20, 2021 5:52 PM

@orange369, if you have bought every time the SPY would test the 100sma you would be profitable. Long-term this is a buying opportunity.

orange369

⋅ Dec 20, 2021 6:02 PM

@dorfmanmaster, technical analysis is great. absent fundamental catalyst(s), things don't look good at this point. This time seasonality effect is not applicable, near future no more fiscal and/or monetary stimulus, omicron is known quantity...
- again, what is the catalyst?
today and near future, these markets are for trading only, absolutely not long-term investment. as I understand, new strategy is to react, react to 40%-60% drawdowns.
lastly, taxes...if you sell before new year, you have to pay fat taxes. if, however, you sell next year, you have the opportunity to lose a bundle without tax consequences...

dorfmanmaster

⋅ Dec 20, 2021 6:08 PM

@orange369, while I would love to know the catalysts, technical analysis gives me a clear picture of how to trade.

It's not what you know, is what you do along the way.