Ok, we did not get CRAZY Wednesday but a massive drop
is still in the cards. Unlike what I thought, the FED would surprise the market with a no cut, they delivered the expected to the market. However, like I said, that was all priced in. The markets had a very muted reaction on Wednesday and started to go down Thursday. Not a typical reaction from a rate cut. Hence we are now at a topping formation in my opinion and it is down hill from here ... The China negotiation noise were enough to close the week red and produce a .45% decline on Friday. Should there be a compelling trigger in the next few days or weeks, and god knows there are a few lurking on the horizon, we will have a VERY nice drop! As a reminder, here are some of the potential triggers:
- Trade negotiation between China and US could derail
- The BREXIT's faith is to be determined this month
- Europe' s and Global economy are weakening
- Earning season starts and we are in an earning recession as of last quarter... will it be continue?
FYI, historically, the week after triple witching is not good for the market. That is this week!
I missed on my UVXY
calls but still in position with my January TECS
calls... Pay day is coming. As always with the market, you have to be patient sometimes.
Good luck! Trade safely!
Disclaimer: The above are just my opinions and should not be construed as trading advises.