Friday, October 2, 2015

It's a V

How dare I doubt this bull market.  This morning was a giant fakeout.  About the biggest fake out I have ever seen in the market.  If we had rallied strongly straight from the opening bell, it would be more plausible, but after an hour of trading, we were actually down from the gap down open.  The scared money has already sold.  We are on the right side of the V.  I do have some long exposure, but I am not as long as I want to be.

I expect a test of SPX 1990 by next week.  But ultimately, we are on a mission towards 2040.  I expect that to happen by the end of the month.  The market got everything it wanted, lower interest rates, a higher stock market, and the Fed now likely on hold till 2016.  The nonfarm payrolls report will be forgotten by next week as the under invested hedge funds need to get long to catch up.  It will be a mad scramble for stocks in the coming days, do NOT fade the rally.

1 comment:

Sam Kang said...

Made the switch today. Dumped the CVX at 83.35 and got in to GPRO Nov 20 calls $30 calls.

I think GPRO got explosive upside imminent so had to chase the dough.