Market goes up and down, So what?
I really enjoy readding people analysis on individual stocks and market as a whole on here in general. But recently, I have noticed it is going beyond analysis and into becoming offensive or getting offended at each other. Market goes up and it goes down. It's what stock market has been doing since its creation and no one here is obligated to be right! However, I think sometimes it is necessary for a humble trader to just say I do not know what market is going to do!
Now let's get technical! So far as you can see the spy has not broken out of its up trend, however, we didn't witness a break out as well. Also, the lows late March concluded at much higher RSI compared to the one in early March! All of this is a good sign, however; spy is also has been joining its 200 EMA at much greater frequency. Also, news that is coming out of market these days is much of a mix message. We have hedge funders busting their margin, bond market struggling, Chinese stocks may get delisted and on the other hand government is yet preparing for another stimulus package this time bigger than any previous stimulus packages.
However, unless you want to buy SPY ETF itself which I think can be profitable at the lower bank of the channel (given the right market condition) what I am analyzing here is no use to you. Why? Because SPY composed of many sectors. I haven't seen significant volumes and unified direction in all the sectors to say market is in great condition and one can get away without pick and choosing. Hence, we see slight fluctuation in S&P500, while some sectors such as tech has been dropping significantly over past 2 weeks, while financial sector has been paying its participant handsomely. Recently I see rotations in and out of sector lasting only few days! In simple words it is chaotic!
So, I am going to try to lead by example to say: I do not know what market is going to do, it is all over the place and can go either way. We can hit 405, 410 level or we can go all the way down to 385 level and even lower! In this market condition I rather, stick to short term gains and just buy small amount of my favorite stocks may I find them at bargain price and this is my opinion and it is okay if I am wrong! At the end of the day if every trader was to be right none of us would make any money doing this!
Now let's get technical! So far as you can see the spy has not broken out of its up trend, however, we didn't witness a break out as well. Also, the lows late March concluded at much higher RSI compared to the one in early March! All of this is a good sign, however; spy is also has been joining its 200 EMA at much greater frequency. Also, news that is coming out of market these days is much of a mix message. We have hedge funders busting their margin, bond market struggling, Chinese stocks may get delisted and on the other hand government is yet preparing for another stimulus package this time bigger than any previous stimulus packages.
However, unless you want to buy SPY ETF itself which I think can be profitable at the lower bank of the channel (given the right market condition) what I am analyzing here is no use to you. Why? Because SPY composed of many sectors. I haven't seen significant volumes and unified direction in all the sectors to say market is in great condition and one can get away without pick and choosing. Hence, we see slight fluctuation in S&P500, while some sectors such as tech has been dropping significantly over past 2 weeks, while financial sector has been paying its participant handsomely. Recently I see rotations in and out of sector lasting only few days! In simple words it is chaotic!
So, I am going to try to lead by example to say: I do not know what market is going to do, it is all over the place and can go either way. We can hit 405, 410 level or we can go all the way down to 385 level and even lower! In this market condition I rather, stick to short term gains and just buy small amount of my favorite stocks may I find them at bargain price and this is my opinion and it is okay if I am wrong! At the end of the day if every trader was to be right none of us would make any money doing this!
Not a Financial Advise, I may have an open position in this underlying.
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