mrstockyetoro

βž• Stay Positive, 23rd November 2022

Long
AMEX:SPY   SPDR S&P 500 ETF TRUST
πŸ–Ό Daily Technical Picture πŸ“ˆ

➀ The sideways movement looks to be resolving to the upside. The SPY / SPX500 is looking to breach and stay above the psychologically important 400/4000 level. VIX has collapsed heading towards the 20 level.

➀ Commodity Trading Advisors ( CTAs ) or better known as Trend Followers are a group of institution traders/whales. They are computer driven algorithms that take medium term positions across hundreds of markets. The stronger the trend (up or down) the larger their positions (subject to volatility constraints). I understand these strategies well since I used to work for one of the largest CTAs in the world.

➀ As this Bullish run continues, a major increase in their long equity positions may be starting to trigger. This is exacerbated further with the lower volatility e.g. falling VIX . Lower volatility means the ability to take on larger positions per unit of risk. This buying will be a major support for equities.

➀ I have increased my long exposure to +68%. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.

➀ Conclusion: Stay positive, I'm riding the up trend for now.

πŸ† eToro Popular Investor πŸ’°

βœ… Copy My Trades @ eToro, https://www.etoro.com/people/mrstocky

βœ… Verifiable Track Record πŸ“ˆ

Not Investment Advice
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