From big losses to big gains

What a week!

Following a wonder-rally on Monday, for which I took a good profit for a long position on SPY, the market crashed again straight for 2 following days. It was modestly oversold by the end of Wed, for which I thought I could bet for an overnight dead cat bounce. It was a right bet at the beginning of the day on Thu and everything looked rosy for me till Powell opened his bad mouth early afternoon. He just ruined the rally party and not only all my paper gain was wiped out but actually my large short position turned to a big loss by end of the day!😭 Damn it!  While it was painful to see such kind of 180 degree switch to the downside, I was convinced that the market now had become quite oversold, due for another wonder-rally, similar to Monday's I figured. With that thinking, I doubled down for my SPY long positions before closing yesterday as I thought even if the market couldn't bounce immediately, it was just a matter of time it would pretty soon, given how panicked the market was. In addition, I also opened another trade for shorting VXX, expecting that the volatility would collapse along with the market's dead cat bounce.

Well luckily, the market didn't disappoint me today. We indeed saw another wonder-rally day with S&P jumped nearly 2%! And I closed 4 positions for big gains today with a rollercoaster gyration in the 24 hours period!😇   

Given the magnitude of the oversoldedness, it seems the market still has some momentum behind for the dead cat bounce. I think S&P may want to dance back towards $390ish early next week but following that, I think we will see another painful plunge. This will likely be the volatile oscillation we are going to see in the next few weeks till the market finally hits its bottom. I still believe S&P is due for a 10-15% correction at minimum before all is done! 

PS:
I have registered as 深山老林 at SafeChat (SC) (You need to download the SafeChat app first) and have set up a new SC chat group. I'm gradually shifting our major social media interactions to SC instead of WC. If you'd like to join my group, sign up a free SC account easily and search for me and connect me as friends.  For friends sharing  similar conservatism views, let's come together to form a better chatting group that won't be constantly disturbed and harassed by the insane radical censorship!