With all of the bearish talk going on, i thought it would be helpful to post an update of my current long call position on the sp. Currently still holding full position and will continue to hold until 295ish. We have a clear 5 wave in progress off of the local bottom to start a new bull cycle and continue the overall trend. Also note that the overall sentiment across retail is very bearish it seems and that is not measure by anyything other than my perception of the stock chat, which i find gives me a good enough sample to gauge. All this talk about how september being the worst month yadi yadi ya...well whatever, i dont trade based off of this nonsense. Cool we corrected and now we continue up...bears had some fun over the last week but now its time for the mega bull to come. My current count says that we just finished wave 1 & 2 of the larger 3 and now we are entering wave 3 of 3. Even though I do not make trade decisions based off news or really fundies at all, but if i had to guess what the catalyst will be to bring the market higher, i would guess that something with the trade discussions will resolve. However, if you wait till something like that is announced you will more than likely miss most of the move. I suspect that tomorrow we will correct for a wave 2 of this newest sub-cycle, this would be a great place to enter or re-enter if you no longer are in a position. Its simple, just keep an eye out for the higher low and buy for the longterm. If you just cant keep still and have to be in and out of positon, aka day trading, a good strategy is to identify the longer term swing and establish a longterm position then simply trade around it. Doing this will allow you to take risk-free trades once your longterm position is in profit. Just my 2 cents. Also the blue line extending up is just for reference, i dont know nor do i care if it reaches that point, all i care about is the structure.
Comment:
We have completed the 5 wave up as planned, now looking for the wave 2 pback which we will load the boart on. I did go ahead and close out the majority of my contracts that i purchased in june so that i can re-enter on the confirmation of new bull cycle and extend the exp on my position, which will be the wave 2 over the next couple of trading periods.