S&P 500 is the most bullish market in the world. You cannot underestimate the strength of this index. It is the UPOD of the financial markets. Underpromise, Overdeliver. That is why I went long ES last week, and even with a bad long entry last week, in just a few days, the position is well in the green, and I closed it out this morning.
It is almost like a video recorder, this market. You can replay February, April, August, and now October and you pretty much get the same show. The market dips, people get fearful thinking we've broken important technical levels, only to see the market do a V bottom and leave behind the doubters in the dust.
Last week was the Ebola bottom, and it amazes me how those in the financial markets get into a frenzy repeatedly over meaningless news. In fact, I was glad to see those Ebola headlines, because I knew the selling was irrational. Also anytime you have paper napkins chartists on CNBC espouse about broken technical levels, you know a bottom is almost at hand.
I am begging for a pullback now that I have sold, hoping to buy again, around ES 1935, and if I have the good fortune of being given that opportunity, I plan on riding it to ES 1992.
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