SPX / SPY -multiple indicators suggest overbought and correction is qualified.
However, with Federal Reserve putting liquidity without notice or disclosure to the public has lengthened the cycle.
While this was unpredictable, this kind of action is unsustainable.
After getting contradictions from some members, I objectively redrew the blue wedge.
After looking at the outcome the lines suggest that we are still:
- at the resistance level line (white or blue line)
- at topped out RSI
- at all time highs in price
- and close to the end of either of the wedge patterns you choose (white or blue).
When looking at the RSI trend, I noticed there is a double-top pattern (like a fakeout) right before price actually drops.
Same trend is occurring now. We should see another top on RSI and then a downturn by end of week or sooner.
I am still actively in this position and will remain in this position
-as I have a small 1 put position to gauge entry while having a position, adding as downturn occurs
-do not have a 50% loss on a $4.00 put.
-the risk reward for this trade is still over 1:8. So my $400 has $3k potential for SPY at $290 which is within range.
-my positions are for December 20 or further strikes, so I have until December 1st or so to pullout, profit, or reposition
I place my orders close to what I see is the best entry point based on more than 3 chart indicators. If I am right, I profit quickly.
If I am wrong, I take a small loss on a small position and either pullout for re-entry with small position or move on.
In my opinion this current market trend is not sustainable and is overbought. I am waiting
Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
Disclosure - I am long MARA, GBTC, BTCUSD, GDX, VIXY.
Short SPY and AAPL.
However, with Federal Reserve putting liquidity without notice or disclosure to the public has lengthened the cycle.
While this was unpredictable, this kind of action is unsustainable.
After getting contradictions from some members, I objectively redrew the blue wedge.
After looking at the outcome the lines suggest that we are still:
- at the resistance level line (white or blue line)
- at topped out RSI
- at all time highs in price
- and close to the end of either of the wedge patterns you choose (white or blue).
When looking at the RSI trend, I noticed there is a double-top pattern (like a fakeout) right before price actually drops.
Same trend is occurring now. We should see another top on RSI and then a downturn by end of week or sooner.
I am still actively in this position and will remain in this position
-as I have a small 1 put position to gauge entry while having a position, adding as downturn occurs
-do not have a 50% loss on a $4.00 put.
-the risk reward for this trade is still over 1:8. So my $400 has $3k potential for SPY at $290 which is within range.
-my positions are for December 20 or further strikes, so I have until December 1st or so to pullout, profit, or reposition
I place my orders close to what I see is the best entry point based on more than 3 chart indicators. If I am right, I profit quickly.
If I am wrong, I take a small loss on a small position and either pullout for re-entry with small position or move on.
In my opinion this current market trend is not sustainable and is overbought. I am waiting
Thank you for liking, commenting, throwing up a chart, following, or viewing.
I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
Disclosure - I am long MARA, GBTC, BTCUSD, GDX, VIXY.
Short SPY and AAPL.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.