I recently read the first half of technical analysis of the financial markets, and I noticed that SPY had formed a perfect double bottom reversal pattern. Additionally, SPY has broken overhead resistance at 312-313, returned back and it acted as support. Now we will see a final push upward to fill the gap near 323. This may continue higher to close the last gap overhead from the February 19 drop.
In the near term, I think we have a bit of a melt up (not like tesla though), to sucker in more FOMO and buyers. Then we see a 15% pull back to close the gap below at 280.....Queue round 2 of fiscal stimulus, and go long with 1/15/21 calls SPY 400, QQQ 300, TSLA
Looking back at major movements in SPY I have noticed an odd pattern of dates that are 9th, 19th, 29th being the beginning of a major reversal in trends.
Feb 19th, we all know that date, beginning of free fall
(more dates below)
Not financial advice, more for my own record keeping and being held accountable for ideas. Happy to discuss the book if anybody is interested, I have found it quite useful as of late.
In the near term, I think we have a bit of a melt up (not like tesla though), to sucker in more FOMO and buyers. Then we see a 15% pull back to close the gap below at 280.....Queue round 2 of fiscal stimulus, and go long with 1/15/21 calls SPY 400, QQQ 300, TSLA
Looking back at major movements in SPY I have noticed an odd pattern of dates that are 9th, 19th, 29th being the beginning of a major reversal in trends.
Feb 19th, we all know that date, beginning of free fall
(more dates below)
Not financial advice, more for my own record keeping and being held accountable for ideas. Happy to discuss the book if anybody is interested, I have found it quite useful as of late.
Comment:
Gap closed much sooner than expected. Will likely see this expanding triangle/wedge continue through this major options expiry week.
In regard to the SPY 400, QQQ 300 targets, I would likely start to liquidate this positions in October's election season. I would not be surprised to see a very large melt up to new highs going into this election season for obvious reasons, Donny Pump is his nickname for a reason!
In regard to the SPY 400, QQQ 300 targets, I would likely start to liquidate this positions in October's election season. I would not be surprised to see a very large melt up to new highs going into this election season for obvious reasons, Donny Pump is his nickname for a reason!
Comment:
Looks like I played this one all wrong, let's see how my next idea shakes out
Sep 19th 2019
Oct 9th 2018
Also notice the double bottom reversal prior to our major drop on Feb 19th. This looks very familiar, and COVID wave 2 is now beginning, so it seems like a great time for MM to cause a melt up and plummet