There were quite a few aggressive dip buying and short covering Friday afternoon. Short sellers are once bitten twice shy. They have been run over so many times, and dip buyers have been rewarded buying down days so many times, that you thought the V bottom had started again. No way. The gap down out of the blue (don't blame Hong Kong, the futures were actually green last evening) is usually a gap and go scenario. We gap down and just grind lower all day to finish near the lows.
That is how I am setting up for today, in cash, and waiting with both hands to pick up ES at 1953 or lower. I want to wait till at least 2:00 PM to begin buys. If we are at 1953 or lower after 2:00 PM, I will start layering into a long ES position.
I am having second thoughts about this being another V bottom, we may get once of those classic old style sloppy U bottoms. Either way, SPX 1960 is a good buy area.
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4 comments:
the bottom already in as I said last Friday there will be a Big Red Bar on Monday。 Tomorrow Big GreenBar squeezz the shorts!
Big red bar? We didn't even go down 1% from Friday's close. If that is a big red bar, I don't want to know what a 2% down day is. All Hands on Deck red bar? 3% down day is Apocalypse red bar?
Maybe bottom is already in, but I still see signs of further choppiness. VIX is making higher highs relative to SPX.
5% ww III Red bar！
7% down day is Thermonuclear Red Bar. LOL.
Market is choppy like i said, no need to jump the gun on a bottom, at least till we see a bit more of a flush out.
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