Oh my god! What a master of teasing!! Bears got killed today and the Market God is playing with us again. Apparently too many people over the weekend were talking and expecting a crash for today including myself and the Market God just wouldn't make anyone's life easy. I was hoping to see a sharp selloff today to set up a great buying opportunity but instead the market opened high, followed by even higher closing. There are simply too many people standing on one side of the boat, which is always bad for trading for that direction. Now the question is whether we are out of the woods and the multi weeks' long correction is over? I doubt! It would be more convincing if we had a strong selloff today. But with a strong rebound, I think the market is setting up another trap for bulls to get in and then....kill them!
S&P has made twice fake breakout of its 50 DMA and maybe it is setting up for the third try. While today's huge bouncing off is very impressive and powerful, it has not changed its daily chart bearish outlook yet. Yes, today's momentum can easily carry over for another day or two and S&P can easily go up another 50-100 points but it still has to overcome the 50 DMA first, which is around 2740 as I'm writing and moving. If it simply goes up towards the 50 DMA in the next few days, which looks quite possible, then the chance is really high that it will make another suicide kiss and crash again by carrying all the euphoric bulls. Remember, the market is always trying to kill as many people as possible. Don't chase high and be one of the victims, friends!!
No comments:
Post a Comment