Cup & handle projecting to 1323 SPX. This looks like a good level to short.
5 comments:
Anonymous
said...
Adi, is this just ST setup or for IT setup? I think the POMO money keep flowing into market..hard to make a IT TOP...unless Benny say something to make negative impact to the market.
This is just one method to determine a possible top today for an intermediate term correction.
The way I see it, the market works by discounting participants'expectations and I think the ones related to QE and the economy are at an inflection point.
This is hard to say. Usually during bull markets 10 % or a little less is the norm for bigger corrections. This would take the spx to around 1200. I expect it to become evident when the market is oversold and ready to go higher.
As for the path for the correction, again, I do not know. I will actively manage my positions since we are still in a bull market and the markets do not go straight down after going straight up. For example, if I manage to sell today and the market starts dropping, I will take profits around 1275 and then go short again only after a multi-day rally.
5 comments:
Adi, is this just ST setup or for IT setup? I think the POMO money keep flowing into market..hard to make a IT TOP...unless Benny say something to make negative impact to the market.
Tony
This is just one method to determine a possible top today for an intermediate term correction.
The way I see it, the market works by discounting participants'expectations and I think the ones related to QE and the economy are at an inflection point.
Adi, Thanks for the great posts. Assuming that soon, from current or slightly higher levels, we get an IT correction, what is your target for the SPX?
Secondly, how long do you think this correction will run/last?
Sp.
Sp,
This is hard to say. Usually during bull markets 10 % or a little less is the norm for bigger corrections. This would take the spx to around 1200. I expect it to become evident when the market is oversold and ready to go higher.
As for the path for the correction, again, I do not know. I will actively manage my positions since we are still in a bull market and the markets do not go straight down after going straight up. For example, if I manage to sell today and the market starts dropping, I will take profits around 1275 and then go short again only after a multi-day rally.
Adi,
Thanks.
Sp. stands for Spyros (greek name). Thanks again.
Sp.
Post a Comment