The stock market would rebound strongly and the precious metals could plunge. That was what I was predicting and it was exactly what happened till about one hour after opening today. There is nothing more painful than to see your great profits evaporate helplessly. This is unfortunately what I have seen now when I reviewed what was going on today. The stock market shot up really high at opening but the rally was ruined by the very poor manufacturing data while investors and traders were still not sure about the fate of the debt ceiling deal. If I were able to act quickly at the opening, I would have got over 100% profit for my bet via SSO for a market rally. Of course, I had to work and could not do that. All in retrospective speaking. Honestly, my real thought was that the market would open high and went even higher to close. So even if I were able to trade, I would not have taken my profit at the opening. After all, I'm human being and I have no crystal ball to know how poor the manufacturing data would be to derail the market. Having said that, I'm still very hopeful for my bet for 2 reasons:
- The DOW plunged over100 points during the day but came back all the way to only dropped by 10 points at closing. Purely from the technical perspective, this is a bullish behavior and quite often indicates there is a strong buying interest out there in the market to jump in. Often it is correlated with high markets in the next few days.
- My bet with SSO options still have a few weeks to go. I'm still very much believe that the stock market is oversold in the short term and should be able to rebound fiercely with any positive catalyst. I'm quite confident about that.
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