Stock, Option and Futures Trading
I was told I was crazy
Sometimes I do a post or a outlook and I get flooded with emails saying I am crazy or other things I should not say on this blog. The strange thing is that it is only certain posts where I get emails meaning; I do a post and either I get many emails or non at all.
One of them I remember was this post:
In the last part of the video looking at the $INDU I drew a line saying the pullback is still a buying opportunity and we could go higher.
Then as the market was coming down into the 11/25 low we did more post saying that the market was at support.
Or the market update on the SPY here:
The point is the market is still holding support of each wave with even bigger support behind us. Looking at the SPY chart we have Daily Yellow bars and we have now went to green so the big move is looking like it is going to be up.
There is one more important level for resistance which is $133 on the SPY. I am not saying the market will go straight up we could hit $133 then pullback into $120 again but what I am saying is short here is not the trade that I would be looking for.
We had a area last week that was a level that could have been considered for a short but we sat that out because the bigger trend is up.
If you jumped on CMG at the $340 level we would have the stop at even. We posted long MGM and GS to our members on 12/23 and those stops should be even as well. GLD stop at $155
I said a few weeks ago that right here the best thing to do it not get stuck on one direction only if you were thinking short. As traders it is easy to talk ourselves into things that are not there (Or Confirmed). I can be wrong just like everyone else but the thing I have learned over the last 17 years of trading is to wait for more confirmation before getting stuck on one direction.
Where we are at now we could pull back into the $122 and still be bullish on the current wave. Maybe soon we will get that pullback or maybe not. We could have a short squeeze from where we are currently trading at even though we are oversold. The next week the market will most likely start to get more emotional.