Be ready for another panic selloff

I must say I'm really impressed by the speed of the sentiment change by traders. Just last week, it was universally depressed to the point almost like the end of the world. Almost everyone (excerpt me of course) was talking about new lows or a 20% correction. I went out on a limb to go against the crowd by saying a big rebound was coming. Here is what I said last week: The rebound could be fierce and powerful given how much panic we have seen. All the sudden there may be a FOMO moment (Feel of Missing Out) that everyone who sold hard due to panic wants to get back in, in fear of missing out the bottom or being left behind for the next uptrend. Look for the 2680-2730 band as the strong resistance for SP. If hit, especially around 2730, another big selloff may ensue towards 2600. Yesterday SP hit my upper target and closed at 2731. I was thinking today we could see a reversal. It didn't but almost. You see SP went up almost another 1% during the day and I was prepared to get eggs on my face. But the last minute selloff pushed SP back to 2732 at close. This is a very bearish price action folks. If you are a FOMO, trying to get back on the train for the next leg up, be ready to be disappointed and shaken out. It always amazes me by seeing how fast people can change their mood and now I'm hearing people talking about new highs soon. Of course they could be right and I could be wrong but I do believe it is an illusion to think a straight line up to new highs after such a historically severe and fast correction. The market simply does not behave that way. Instead, it is always doing its best to try to fool as many people as possible into one direction and without warning it suddenly changes its course and scares everyone out of chair. I suspect we are going to see this sudden shock again, probably starting next week.  BE READY!


For myself, I'm ready for another big selloff as I have abundant puts in place after taking full profits from many of my put selling today. It will be fun for me to watch how the market sentiment will change fast again!