This bull market run defies logic.
No matter — the markets do whatever they do.
I learned many years ago, in painful ways, this truth. So, now, I stay short term focused on the only real market data you can trust — the stock price.
Forget all the other fundamentals. Why?
Well, because you have to trust the information being provided. If this year shows you anything it should be teaching you that the only thing you can trust is what you see and experience first hand!
The stock price is the price.
The moves of the day are the moves of the day.
So, we watch and trade.
Right now, I still think this market is going to have a massive downswing but have no clue as to when that will happen.
So, I keep putting on some short trades to capitalize on that move….when it occurs.
This is an extremely hard market to trade.
Currently, I have a small leverage short position on the SPX. The ticker is the $SPXU.
I had been hunting the $COMPX with the $SQQQ but that never got traction so I got out. Otherwise, been playing very short term long trades on stocks with price momentum.
Well, on the $SPXU I think the SPX is showing possible signs of the down move.
Let’s look at the charts.
6 month daily….
Yesterday’s down move from the current high is promising (as in signs of weakness).
2 year weekly…
This shows the price stalling out at the high.
If the price moves under 3,500 we likely see a swift move down to price support around 3,200.
And, if things totally crap out that low in March could be out there.
But, who knows????
Trade carefully this market we shall.