Playing for a drop is not easy in this bull market. I shorted the bounce, and it bounced some more. Now we have blasted through the ES 1940 barrier from Monday and overnight and since we dropped so fast 2 weeks ago, there is very little resistance till you get to ES 1956, or around SPX 1960. I took the loss on yesterday's short. I will save my bullets for later. I still believe there will be a big swoon sometime in the next 4 weeks, but timing it is tricky.
I am sure last January is on many investors' minds, so fear of missing out is a pervasive psychological factor on this bounce. And since we're in options expiration week, having bounced strongly, it is unlikely that we will get any meaningful selloff this week. Looking at the put volume over the last 2 weeks, fund managers are well protected this week with August options. So if we are going to selloff, it will likely have to be after this week.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment