Last week would probably let down those shorts in the market ðŸ˜, because traders are BUYING THE DIPS!!! Actually, I have been one of those shorts wishing for a big DOWN move before figuring the whole thing out! 😛
It seems that bulls are still in control, as what I demonstrated in above chart, an ascending channel is clear to us , right? Please , give me a 3000 in SPX !!! 😈 (what I say when I am holding calls)
Everyone is saying that there will be another big crash to come 😦 , instead of believing that mainstream perception , I would say a prolong consolidation is more likely to happen before US president election, and the range would fall within 2600 - 3000 . Because bears didn't do their job in defending the 2600 zone (previously it was a demand zone).
With this assumption in mind, I would be engaged to do more swing trades and try to pick up the tops and bottoms in the zone. 🕺
Disclaimer: My analysis is personal opinion only, guys you should find the most familiar patterns and signals to trade.😉
Comment
â‹…
Unfortunately the channel has broken, 2560 - 2600 level is our destination
I agree. I've been so bearish, and just getting killed. The last few days I've realized we have to follow the money supply and there is plenty of liquidity right now. So the new move is exactly what you said. Swing trade the highs and lows within the channel, all the while waiting for smoke signals for the bigger move down. I think it could happen middle/end of June when the $2.3 trillion matures, and corporate quarterly taxes are due. Maybe I can recoup what I've lost with this channel swing trading, in time for the big move down when it arrives. Happy channel trading!
KAZAF_1M
â‹…
@Money2020_ET, before the channel is not longer working anymore, I will keep buying the dips and selling the tops. It is worthwhile to put some puts when prices touch the channel bottom for the fourth or fifth time because buyers will start to question the continuation of the uptrend. I am also waiting for a big red day to jump in for a down move to 2560 - 2600! Stay safe and happy trading.
tuongvy0501
â‹…
when everyone stars to think its bullish it will turn bearish. just like when people think we were bearish spx ran bullish
KAZAF_1M
â‹…
@tuongvy0501, I totally buy into your idea!!! Charts, crowd sentiments and critical thinking are what we need to become profitable.
ChristianSennesvik
â‹…
"Everyone is saying that there will be another big crash to come "
Read the media yet? 7 out of 10 are saying buy stocks, these are cheap etc. There are _very_ few people still bearish, and the market itself is acting as if in a bull rally. Usually, that's not good, besides you fail to see that we have yet to trade above 29.-30. highs, in fact, we are stopped out every day since. And the fact that most days start high then retract and do the same over and over again, only one not doing it is NASDAQ. The same pattern is shown on Down Jones, and Russel 2000.
KAZAF_1M
â‹…
@ChristianSennesvik, Sorry for not catching up with the latest news. But I am saying people are still anticipating an ultimate bottom which is lower than the lowest swing appeared on 23rd March. What I think is different to their, and the coming swing low will be at 2500 - 2600. Also , I have the same idea when it comes to the patterns of different stock indexes, and I have thought Dow Jones somehow misled us on the strength of this rebound when you compare it with the NASDAQ. My advice is putting your energy and time to trade the index(es) you are able to find profitable patterns with.
VivekLokesh
â‹…
Actually to the contrary, not everyone is continuing to preach that crash is coming at us anymore. Every single last bear out there, including ourselves, are being converted by the day. Rest assured that bearish sentiment is almost over.
And you know what means? They won't pull the rug until all retail money is bought into this rally.
lonelygrass
â‹…
@VivekLokesh, watch the 3 year - 10 year treasury yield spread. Smart money are not fully switching from bonds to stocks.I think there is still chance to buy cheap stocks.