For all the 20 years old screaming in their high pitched Mickey mouse voices - the market is going to 700. You should learn something.
The implied move for this week on SPY is 15.77 (I posted this on Sunday, link below). This is blocked off in the blue horizontal lines.
This information is pulled from options data.. where all the banks put their money. What that means is the big banks and everyone needs to start hedging their position and things can start to get a little wild before they reel in the market if it exceeds this. Then they reel the market right back in to its expected move, should it break it. How odd, todays move, two days into the week, exceeded the move and stopped. It also filled the gap that was made a few weeks back. See the two horizontal blue lines... this is your expected move for the week. This is what all the banks are counting on. We came outside that and stopped today. Now lets take a look at what the banks are saying. They are 75% bearish for the rest of the week. Again, this is taking from options data. So what would you do? You can hope it keeps going up and up, the market only goes up and crashes and corrections never happen right? (you may want to check all the puts being bought going into January for a very nice drop coming up) but thats besides the point. I wouldnt be long........... I am expecting a nice move down this week. Also, look around at stocks, which is what I am in. Everything looks pretty topped out in their patterns. Add all these things up and what do you have? I will be looking for a nice move down. Good luck kids!
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My charts across the board show a major drop coming. Huge drop. So I just wanted to see when the feds speak again and what do ya know.
Not saying this is the headline to cause it but tuck that away and keep it in that back of your mind. I know.. the kids will say damn it! If it wasnt for the feds speaking, the market would have gone to 80000 billion on SPY. No.. news just comes out at all the right times. The chart should be telling you news is about to come out to take it down. But you emotional people out there just do not get it....... and may never get it, but till you do, you will continue sucking at your market positions.
I agree with you. Check out my TLRY Sniper Edition post. In the comments I was basically telling this guy the same thing.
CJS04
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@SimplyShowMeTheMoney, nice! Pot stocks are interesting to... I do have a smaller position in CGC. I did not like the break of trend (similar to your chart) but there will also be tremendous upside to them. I think once we crash and start the next bull cycle they will do well. I am going just based off a chart perspective and thats all one should do. Its a fad sector, blah blah blah but the charts point to a very nice move to the upside down the road. It's kind of like Peloton. Like them or not, when that bottoms, there will be a nice percentage to the upside to be made if you are patient and wait for the bottom to come in.
SimplyShowMeTheMoney
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@CJS04 I agree. Once retailers get destroyed (sad but true) banks and hedge funds will load up at the new bottom. Weed sales will be huge in the states once legalized. The rising generation will be hooked on weed, especially with depression/anxiety increasing in teens/young adults.
@CJS04, Blown the F out again. Worst trader on this site. Get wrecked.
bdbandit
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Question for ya. What happens when a pattern such as H&S is interupted by an event. Does it still continue to complete it or is it now skewed there for voided of that pattern?
CJS04
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@bdbandit, generally, if something is broken in a trend, it becomes invalid. It depends what time frame you are on too because little blips outside a pattern in a higher time frame can just be seen as manipulation. Ever see a wedge where you are looking in a higher time frame what you once thought was a big move (say on a hourly) then becomes nothing but a wick on a daily time frame for example.
bdbandit
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Im just curious on the big h&s starting nov on spy that got interrupted on the 3rd peak by omicron. I was thinking with the futures tonight it would complete it . How off am i ?
CJS04
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@bdbandit, Go on a weekly time frame and tell me what you see... lets see what happens when we get to the 430 level. That will be huge! And there are tons of puts at that level and below being bought up for several weeks out (time on the clock) .