Ride the Bull

Only in hindsight will we know if we had a successful retest of the lows on August 24, but if you wait for confirmation, you miss most of the move, as these bottoms usually are V bottoms, with the biggest gains happening in the first 2 weeks after the bottom.  In order to make the big gains in the market, you have to visualize and anticipate what will likely happen, based on recent trading.

Most of the evidence that we have seen over the past week, and looking at the bigger time frame since the crash on August 24, shows a market that has transferred stocks from weak hands to strong hands, is excessively bearish as shown by the extremely high put-call ratios, sentiment surveys, social media, etc.

I am long stocks and will ride the bull for several days.  I don't want to lose my position, so there will be minimal daytrading, although I expect some strong resistance around SPX 1945-1950.