Michael Burry's given up but that's not why I'm going long here. RSI is above 60 for the first time since February. Contrary to what most people think, RSI is most useful as a momentum indicator and not something to identify trend reversals with. Going into the results season, we're approaching resistances again, but these are the levels I'd consider my targets for now. Of course this is a risky trade, so we'll keep SLs tight at around (or slightly below) ~4000.
Target 1 - 4180
Target 2 - 4320
Note: Using SPX just because it's a personal preference. The Dow and Nasdaq looking good too!
Target 1 - 4180
Target 2 - 4320
Note: Using SPX just because it's a personal preference. The Dow and Nasdaq looking good too!
Trade active:
It's been painfully slow, but like I said, momentum is on the upside. One hack for navigating markets like this (with RSI > 60) is to sell Put Options on every dip and wait for the markets to recover. Fundamentally, nothing much has changed. Bias still on the long side.
Trade closed: target reached:
Beautiful in hindsight.