$SPX looks decisive weak
Its been a long time since i last blog. Being busy at work reduces the impetus for me to continue blogging but i will try to when i can.
At the same time many people are grappling with the problem that the market is deciding whether it will go up or down. Many will be tempted to take a bet on 1 side since we are at a point where:
1) the market is down alot, its good to add on
2) the correction needs to take one final dip below november lows before a bottom is in.
I seriously dunno what to say for some weeks since it looks like it can go either ways. What i rely on are my indicators MACD, RSI to tell me the short term trends and scrape some here and there. Its good training i feel. Its easier to earn when the trend is know but in a monster like this, you can only stick close to the indicators and your money management and play along with it.
At this juncture, I think the bears have it alot better than the bulls. We had 2 weeks of decision from the Treasury Secretary and US president and it didn’t end up well for the market. The SP500 and DOW are moving towards the November lows.
1 ETf if you are nimble enough is the SDS which enables you to earning some on the downside. I had a pretty good experience with it.
The RSI (2) indicates the short term trend is very oversold. I would expect a bounce here. And its a good thing i close my SDS trade today before the pull back.
The 805 region is the resistance i feel. But i dun think i will attempt any short term trade long cause the risk vs reward is not worth it for the sp 500 etf. I would most likely look to the banking ETF. Gotta do some work tonight.
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Yes the market in in shambles and I have been saying for months to other trading peers the DOW is going to visit strong support in the 7200 area. Unfortunately, beneath 7200 is uncharted territory as far as recent history except for 9-11. If the DOW slips below this area of strong support, all bets are off.
Hopefully we will start to rebuild the Indexes after we reach this point. At least I hope we do… for all our financial sakes. You have a nice looking blog, by the way. Thanks for letting me share my opinions about the market.
Jagger