It is still too early to be a buyer, and even as buyers it still would be small positions with limited risk, as we can see a similar
setup was happening in 2008, where SPY created hidden divergence but it failed and the Stochastic buried itself in oversold
for more than a year. The very same situation could happen now, but I expect a short term bounce, before it moving to the 200
MA monthly at 231 or so. The alternative is the market is bought and the bounce is longer, perhaps double top, and then fall,
and the third alternative is it rises and creates a higher high which would be bullish. Any way it turns we can be prepared,
For now I recommend cover any short positions in most assets.
setup was happening in 2008, where SPY created hidden divergence but it failed and the Stochastic buried itself in oversold
for more than a year. The very same situation could happen now, but I expect a short term bounce, before it moving to the 200
MA monthly at 231 or so. The alternative is the market is bought and the bounce is longer, perhaps double top, and then fall,
and the third alternative is it rises and creates a higher high which would be bullish. Any way it turns we can be prepared,
For now I recommend cover any short positions in most assets.
Comment:
Still not time to buy, and the monthly Stochastic could bury itself in oversold. I still expect a bounce and then the Stochastic to be rejected at the 20% line.
Comment:
There is the bounce. This will likely move to fake out the bulls. The best way to manage this trade is the daily time frame. We will be looking for negative divergence in the daily timeframe, and this will let us know that it is time to sell. I'm just gonna give my self a "thumbs up" because I keep nailing all the charts I post, and have been doing great. My rant again is: I still see SOOO many bad posts with sooo many likes! How do they make any money? Oh well. I will post a daily chart tracking the bulls progress.
Comment:
A bit early, but corrected my analysis. We expected this strong move up. We can not be certain at this moment of what will happen next. We need more information before we can predict with any confidence of what will most likely happen in the near to mid term future. For now the markets look to continue this bounce.
