S&P 500 IndexLong
Exhaustion
Updated
My chart readings are based on previous events. Take a look at the RSI, in particular my level set to 19 and change. Previous times where this level was reached, the market changed direction soon after.
Also, take a look at McClellan Oscillator. Compare Oct 09, 2008 and today, they are very close in value. The 9th was a Thursday. The 10th, Friday, saw more selling and the following Monday, people were buying. Could this repeat? I've used the oscillator for years as a barometer for when the market is oversold and have had great success with it.
If the market opens with some selling, I plan on buying a small amount of SPXL. However, I won't be holding onto it for long. There is too much fear and uncertainty. If no one comes up with a quick solution to the Coronavirus, I think we were about to enter a global recession.
BTW, the blue line is where I plan on buying. I'm thinking the selling will hover around that area. But I could be wrong....
Also, take a look at McClellan Oscillator. Compare Oct 09, 2008 and today, they are very close in value. The 9th was a Thursday. The 10th, Friday, saw more selling and the following Monday, people were buying. Could this repeat? I've used the oscillator for years as a barometer for when the market is oversold and have had great success with it.
If the market opens with some selling, I plan on buying a small amount of SPXL. However, I won't be holding onto it for long. There is too much fear and uncertainty. If no one comes up with a quick solution to the Coronavirus, I think we were about to enter a global recession.
BTW, the blue line is where I plan on buying. I'm thinking the selling will hover around that area. But I could be wrong....
Note
Woke up late at for the open. Ended up buying SPXL cheaper than anticipated. Lets see if the FED steps in to encourage the bulls.Note
I'm taking some profit. Selling a third of my shares. Could see this going higher but anything is possible.Trade closed manually
Sold the rest of my SPXL. Things got really bad for the S&P. Unless another cut comes, I think we will continue to slide. I wish I was able to buy some SPXU. Oh well!
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