Ok so nobody can really predict the future, but you can build a handful of probable scenarios and make your bets accordingly, just like you do in poker. You have a plan for every card turned over after the flop. The market is no different than a well-executed game of poker--with the added benefit being that it's easier to predict a computer's cold calculative moves than it is a human's irrational, fear-driven thought process.
This just happened to be the most probable scenario to play out... and it played out EXACTLY. It's like wishing for an Ace...but getting two.
So I scribbled this chart in the middle of a really nasty low on the SPX (1805) and I screamed in chat: "This is the bottom!" at a number we had been talking about for a month in chat, 1805. Just as predicted. And about an hour after I posted the scribble chart, as you can see on the next one that very red candle immediately traded up by looking at the real SPX chart. Here is the comparison chart. We nailed that reversal a month in advance and we were piling into longs there.This is in no way a bull market. It's going to trade up for bit, hover as earnings season finishes up, and if there is no push past the 2020-2040 range, it will fall hard.
And the last ten days the scribble chart is right, to the exact price points of the red days in between (1930 top) for TEN STRAIGHT TRADING DAYS. This is a time to celebrate, I want to see how many days this streak will last! Can we hit 15, 20, 30 days?
The scribble may look funny but I did it for the chatroom as a quick look over of about 25 price targets between here and the 2020 SPX top. How we do it... well that's what you read this subreddit and hang out in the chat to find out.
The people we trade with on a daily basis are pros at technical analysis and when you have a hundred guys in a chatroom all chewing away at market technicals you tend to converge on a solution that is very well thought out... and it just so happens we've been right; and we've been making a lot of money.
This is my current trade plan for the SPX I bought SPXL yesterday as I outlined in the last post, and I added a little more on the dip today and now have 800 shares and am looking very nice in my long. My exit target will be whatever SPXL ends up being when the SPX tops off at 2021. Let's keep the streak going. To 11 days and beyond!
I'll have the full analysis of oil in tomorrow's post, just to keep it short and sweet like I've been calling all week. SPX up, oil up. Don't think about fundamentals right now, it's the algo's trading in this no man's land. It's all about risk and arbitrage and it's not going to make any sense. So just let it do what it's doing and short at the appropriate time which in my opinion is not now.
Happy Trading Everyone!
DISCLAIMER: this is for entertainment purposes only, do not invest your money on this knowledge or off anything I ever say. Risk is yours to take, trade at your own risk.
Submitted February 25, 2016 at 08:18PM by gabriel87120 http://ift.tt/20YhPw1
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