I'm probably sticking this out there in too lengthy of a duration relative to the binary event I'm looking to play, but wanted to post it in the event I space the play out.
Pictured here is a double 4 x 2 broken wing butterfly. Due to its being an 8-leg position, I legged into the put side for a .35 credit and then into the call side for a .34 credit, for a...
Despite what happened on Friday we are still very much in a downtrend.
Bulls will look to turn that into a Bull_Flag, falling wedge breakout next week.
-Fibonacci G Pocket and 20ma held as support last week
Major resistance levels to consider.
$330.65 Weekly candle resistance &12ma
$339.08 Feb Pivot Point & 7MA
$342.60 Well defined resistance | Rejection...
Based on simple Technical analysis, the wisest option is to Hold - Stand aside -
Breakout of the trendline: Weakness signal
Breakout of the EMA: Weakness Signal
Major trend is bullish: The idea is to invest in the trend direction.
I would be tempted to go long although is too risky - Option 1 - 60% to follow the major trend
The SPY flew below the 50d Exponential Moving Average with ease, but now it's hitting major support at the 100d Exponential Moving Average.
On the 21st of September, we hit it and it was rejected.
On the 23rd of September, the day closed on top of it.
On the 24th of September, the market fell below it but the market closed slightly above it.
Volatility is here and its going to stay.
Vaccine, Elections, Feds and actual economic productivity vs credit pump
more money generated out of nothing, higher the wealth transfer effect from middle class to rich and investors, and higher the stock markets
Until the confidence game is over
SPY looks to be forming a descending wedge. I will be watching closely for a break out of this wedge to go long.
Let's see how this plays out the next few days with potentially more stimulus being announced.
Everyone want to make money . Altho there are a lot of ways, trading is the first thing that comes to mind for many people and I was one of them. I began trading in the stock market after I lost my job thinking it's simple. Clearly I was WRONG and learned my lesson the hard way after continuously blowing up my account. Here are some of the errors I reversed to...
I think we see accelerated selling pressure on the markets over the next few weeks. Technicals aside, market psychology has to be bearish:
1) Buffet still sitting on close to $140 Billion in cash.
2) The market bounce was all fed induced, short covering, hedge funds & traders day & swing trading, bots doing their thing.
3) Long term we will be fine, short...