Do not buy into the press's nonsense that the S&P 500 is staging a comeback. It may bounce like a dead cat, but it doesn't have legs. I'm not confident that the market has a rally left in it without a correction, and that'll need to be 10% to 20% draw down to rekindle the enthusiasm in the market makers to drive it higher. If the market is truly rallying back into full steam ahead, we'll need to see the S&P 500 rise and hold above 2950, and that's just to close the last major gap down.
Right now, if you're not certain of anything, cash is a good option. I'm holding my assets is mostly bond funds and precious metal funds and miner stocks. As always, conduct your own research and analysis before executing a trading strategy.
Right now, if you're not certain of anything, cash is a good option. I'm holding my assets is mostly bond funds and precious metal funds and miner stocks. As always, conduct your own research and analysis before executing a trading strategy.
Note
I don't have a way to short sell the SPX in any way (my broker doesn't allow inverse ETFs), but I'm using this as a signal to stay out of stocks from the S&P 500 without a very sound theory of why I would consider buying. This week's whipsaw up and down only confirmed that decision for me.Trade closed manually
The market is no longer dropping. I'd consider this a bullish reversal with some headwinds on the new rally. It may be short lived, so keep your targets and stops tight.
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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.