The last time I titled my post "Correction Not Over" the market mocked me with a huge trend day up. It happened on the 5th of October. Will this time be the same since yesterday's post has the same title?
Back then the put/call ratio had refused to move while the market started to go down and led me to believe that there was still downside to come. The same has happened now:
Interestingly, in the previous case the ratio moved to oversold levels only as the market rallied to new highs.
If this time around is no different, than buying the big gap up would be the right thing to do. However, I will refrain from doing that since the 1250 level is very close. I also think that, even if the market closes strong today, tomorrow or Monday will offer a pull back to enter on with lower risk.
1 comment:
Adi, I think when so many retail traders are bearish (double tops or whatever), market may go up endless. Market always go to the direction that most people are on the opposite side...I think until the bear bus is empty, then we will go down sharply.
Tony
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