SPX Short Opportunities (03/24/2020)- The storm is now over yet.
Tomorrow will be a rally (temporary) as some institutions signal a "buy". This due to the decline of the VIX index, which is a "fear" index.
In a nutshell: whenever the VIX goes up, the market goes down; the VIX goes down, the market goes up. Please check the pattern of Dotcom and 2008 financial crash,
However, there is still no evidence for a "buy" judging on current situation in real life.
Simple: We are currently in the "eye of the storm", which is extremely calm. Still, the "storm" is not over yet.
We will still keep our view: Short. Why?
+ ADP, Payroll data will be released on Wednesday (03/25/2020).
+ Unemployment data will be released on Thursday (03/26/2020) if Trump doesn't delay it.
+ Over 10 majors cities are shutting down ( in more than 5 states). That includes the biggest economy: California (whole state). The heart of the US (Dallas, Texas), New York (New York), Chicago (Illinois), etc.
+ Stimulus packages also include Zero penalty for 401k withdrawals ( which will significantly drag the stocks down).
+ Conflicts between two parties Dem vs Rep. The longer they get, the more the market suffer.
+ Fed's loan will soon reach the maturity dates (when borrowers need to pay the money back). With the current situation, banks will do whatever it takes to pay back the money, which also cut their profit a lot.
We will buy more short + put position tomorrow. This is why we said "do not use full buying power yesterday".
Until the VIX goes down to $100, we will still short stocks.
Thank you.
Good luck
In a nutshell: whenever the VIX goes up, the market goes down; the VIX goes down, the market goes up. Please check the pattern of Dotcom and 2008 financial crash,
However, there is still no evidence for a "buy" judging on current situation in real life.
Simple: We are currently in the "eye of the storm", which is extremely calm. Still, the "storm" is not over yet.
We will still keep our view: Short. Why?
+ ADP, Payroll data will be released on Wednesday (03/25/2020).
+ Unemployment data will be released on Thursday (03/26/2020) if Trump doesn't delay it.
+ Over 10 majors cities are shutting down ( in more than 5 states). That includes the biggest economy: California (whole state). The heart of the US (Dallas, Texas), New York (New York), Chicago (Illinois), etc.
+ Stimulus packages also include Zero penalty for 401k withdrawals ( which will significantly drag the stocks down).
+ Conflicts between two parties Dem vs Rep. The longer they get, the more the market suffer.
+ Fed's loan will soon reach the maturity dates (when borrowers need to pay the money back). With the current situation, banks will do whatever it takes to pay back the money, which also cut their profit a lot.
We will buy more short + put position tomorrow. This is why we said "do not use full buying power yesterday".
Until the VIX goes down to $100, we will still short stocks.
Thank you.
Good luck