The End of a Bull Cycle: $SPY to Collapse; Shorten Most Position
Updated
The bull cycle that has run for nearly nine months is showing all the sputtering signs of a complete reversal. The heavy industries already peaked and went on their runs, the distribution is high, large cap stocks are stalling out at ATHs and annual-highs, and this is not sustainable with the various depressions on the global economy, nevermind just the US S&P.
The arc shown is an indication of this trader's belief we will a re-visit to either September lows, or if not, really close to Sept Lows.
To this point, my recommendation (but NOT ADVICE) is to shorten most positions and remove any margin.
But as always, do whatsoever thou may'st!
This albeit is not the most technical chart, but the various other indicators such as the frequently strong opens and whimpering closes to each trading day, all indicate we have seen this bull market sneakily peakout. There may be a couple of weak spikes back upwards, but eventually, a lot of buyers are going to be shaken out in this sell-off. Chart for the dips to buy later. Also, remember, when a stock really takes a massive hit, it does NOT ALWAYS bounce back to full-health.
These are going to be tougher times for the market, and while this trader has not scheduled any
SPY puts, it is hardly something that would be discouraged either.
GL (THIS TIME WE'RE "REALLY GONNA NEEEEEEED IT" - Smashing Pumpkins).....
BDR
The arc shown is an indication of this trader's belief we will a re-visit to either September lows, or if not, really close to Sept Lows.
To this point, my recommendation (but NOT ADVICE) is to shorten most positions and remove any margin.
But as always, do whatsoever thou may'st!
This albeit is not the most technical chart, but the various other indicators such as the frequently strong opens and whimpering closes to each trading day, all indicate we have seen this bull market sneakily peakout. There may be a couple of weak spikes back upwards, but eventually, a lot of buyers are going to be shaken out in this sell-off. Chart for the dips to buy later. Also, remember, when a stock really takes a massive hit, it does NOT ALWAYS bounce back to full-health.
These are going to be tougher times for the market, and while this trader has not scheduled any
SPY puts, it is hardly something that would be discouraged either.GL (THIS TIME WE'RE "REALLY GONNA NEEEEEEED IT" - Smashing Pumpkins).....
BDR
Note
The next IDEA will focus on the establishment of a downward trade channel if today's bearish signs keep signaling.Trade closed: target reached
Closed put contracts @ 3.70 , Price 1.40. Great trade.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.