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Tuesday, January 11, 2022

Short squeeze is ongoing.....

Following my prediction last Friday for an oversold bounce likely seen this week, we got a panicky selloff instead yesterday. I saw this coming before Monday's opening and here is what I told my chat groups before opening:   
It's difficult to be bullish right now especially when the futures market is selling hard today. But I stick my neck out again, betting on an oversold rebound this week. So I'm a buyer for any dip right now.

And here is what said after closing on Monday: 
What a day! While today's decline was much bigger than I expected, the price action was quite bullish as I expected. Anyone who dared to buy early today would have already gained substantially at closing Virtually buying anything is profitable. I'm buying a lot these days, from AMZN, TSLA, NVDA to shorting VXX. But you really don't need to pick specific stocks, just going with the indexes like SPY and QQQ will be good enough!

But the Market God will never make traders' lives easy and it decided to test the gut of traders once again by selling hard early today. And again, this is the message I sent to my Family with an idea to go long with the selloff:  
 
The selloff at opening today is technically a bullish move for the market, which creates a setup for even a stronger bounce for the days ahead.  

WEll, this does look like what is happening now. I think the Market God is trying to punish those who were eager to short the market early today and my gut tells me that we are seeing a market-wide short squeeze right now, which may last for at least a few days. As the way it goes, I won't be surprised to see a 4800 S&P before this bounce is done and completed🤗😇   

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