Given the uncertainty all around with no buying from big guys from the Street (most of them are already off for X'mas), the market can only sell. But don't be surprised for a "rip your face off" kind of rally in the final days of the year.
This was the crazy prediction I made on the Christmas eve when the market was falling off the cliff and everyone was scared to death and running to hide. Not me and my bold call indeed happened with a furious rebound in the next few days if you recall. We may see another "rip your face off" revenge rally soon, which may be even starting tomorrow but very likely in the next few days even if not immediately. The harsh selloff for the week has made most people on the edge with VIX jumping more than 50% higher within days. Complacence and FOMOs chasing highs in the past few weeks must have been killed by just a few days of market tanking. Now we start to hear more talking about 10-20% correction of the market. Actually I do believe it is very likely in the next couple of months to see it but not in the next few days. Instead, I think a furious rebound may more likely come first, which could lure herd people into bottom fishing again, who will start to chase highs again, thinking the worst has already passed. But let's put this part aside for now and be prepared for the immediate market movement first.
My aggressive shorting positions in place have finally rewarded me handsomely. It is time to take them off and bet for upside now. While Trump hasn't called to brief me what he is going to do, I think he would call his friend Xi tonight and get a verbal deal to postpone the tariff hike for another couple of weeks. That should be big enough to trigger the revenge rally I'm talking about. I could be wrong of course but I'm betting for it now. Technically the market is set up for a strong rally regardless for whatever reasons😇👌
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