Markets did a very nice rally yesterday - opening up with a little gap up above a resistance and then running all day long - what a amazing rally ! Markets did kind of exactly what I called on Friday and Monday. Remember I wrote - I were expecting a very nice rally to begin early this week (Monday - Tuesday ) and until now it played out fantastic.
I remain long TNA size position at 68.8$ and currently is 75.75 - very nice gains in just a few days. Its a swing trade and I think there is more upside left- so I am holding everything.
What I think now - is there is a very good chance we get a pullback today after markets up this huge in just a few days - I would be looking for a minor little pullback as we are overbought on the short timeframe - but the pullback is a BUYING opportunity imho before we head up higher.
As called 1st target for markets was 1290-1300 - we ended 1295 before pullback. Then I expect a pullback to come and after this I think we see 1320-1330 sometimes next week.
Overall remain bullish nothing new for the short term - this rally has more in it than most people think and my target is 1320-1330 SPX area - I would not be surprised if it rallies further - just to screw out lots of shorts...
But remember - there is also the possibility that markets just keeps grinding higher 0.2-0.5% as we have seen before for many days - without a pullback - I have seen it before and its possible again - thats why I wont be selling at the moment my current positions.
So conclusion is to remain long - possible a pullback to backtest a broken resistance and then further up.
Hope you enjoy my blog - everything for FREE and spending lots of time doing this everyday.
Sqwii,
ReplyDeleteThanks for the good work.
Sqwii,
ReplyDeleteI truly enjoy your blog and think you have a great grasp of the market. Thanks big time for all of your efforts and most of all for your willingness to share your work.
David
Sqwii
ReplyDeleteI would also like to thank you for your analysis. I agree that we are headed higher before another larger drop.
Again thanks for your great work.
Thanks for the response - love to see some response on all my blog updates everyday.
ReplyDeleteAppreciate it all guys - doing my best !
Sqwii - I read your blog every day and respect your work.
ReplyDeleteI am going to test your EMA3/SMA10 trend following system as posted over at Binve's site. Very interesting - and simple!
Keep up the great work.