we are seeing many signs that a relief rally could happen soon. But if bear market taught us anything, it is: don't fight the market. It will do what it wants to do, and trying to prove you are right is costly.
After last Friday's sell off, the market has unsuccessfully test the 200 days moving average twice. I strongly believe that the market will retest the 1040 low, and the chance to break through this support is getting higher and higher. As a matter of fact, the only way we can be safe to long this market is wait until extreme capitulation. As I mention in last few blogs, the 80 weeks moving average at S&P 990 combine with extreme volume and high VIX , then we can try to jump in.
I am 100% in cash right now, I have a bear bias, but I am ready for long if the market come to me as I discuss above.
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