I was totally wrong but it didn't mean I couldn't make some decent money while being wrong! That's the best scenario one can expect, right?
Last Friday after three days of hash selloff with many momentum indicators showing signs of an oversold condition, I thought there was a good possibility of a Monday rally. As such, I opened a few long positions. As always, in such a very unpredictable market, I often just use special strategies to minimize my risk but with a high profitable potential. Some are targeting an upside level towards the end of this week but I had two sets of bullish SPX put spreads, betting SPX would not decline below 3800/3795 even if we continued to see some selloffs on Monday. Well, I indeed got the Monday direction wrong. The market still got hammered quite hard most of the day. However it still managed to stay above 3800 at closing. Lucky me for being able to walk away with some good money while I was totally wrong about the overall market direction💪🤓
The Market God has repeatedly taught me a lesson: TA is more of an art than science. We can never fully rely on TA although it is very useful!
Having said that, yesterday's continuous selloff may have actually set the market up for a more decent Santa Claus rally towards the end of this week or even into next week, depending how strong the rally will be. Regardless, various TA indicators have shown good bullish signs at the moment for the near term. I think we will see SPX around 3900-3950 in the days ahead or even towards 4000ish if a stronger rally materializes. Don't get me wrong. We will see more severe declines after this rally is done. Nevertheless I've become more bullish than bearish for the next few days at least! This is what I'm betting on🤗
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