Earlier today I commented not to go long today because XLF hasn't completed it's pattern yet. This is the pattern I was talking abut, H&S on the daily chart. So unless congress does something over the weekend to rescind tariffs, XLF will complete this pattern Monday.
I didn't short it because I expect congress to do something, but it's a matter of when. When they do, the bounce will be so huge, it'll wipe out any put option. Not to mention, the pattern should complete Monday anyways. If the GOPs in congress don't get together and rescind tariffs, expect XLF to overshoot the target by a lot, lol.
Assuming no action by congress, expect market to tank Monday. No idea what happens on Tuesday.
I didn't short it because I expect congress to do something, but it's a matter of when. When they do, the bounce will be so huge, it'll wipe out any put option. Not to mention, the pattern should complete Monday anyways. If the GOPs in congress don't get together and rescind tariffs, expect XLF to overshoot the target by a lot, lol.
Assuming no action by congress, expect market to tank Monday. No idea what happens on Tuesday.
Note
BTW, this is also why I was so bullish on XLF during the last bounce, I actually expected a H&S pattern and had a target in mind. Too bad I didn't bet on Trump to be stupid, lol.Note
Congress does not appear to be in any real hurry to repeal the tariffs, GOP congressmen are willing to see if Trump's gambit works. Expect XLF to complete the pattern.I think we'll hit oversold on the monthly chart, I posted a chart for ES (SPX futures).
No long positions until the market fully prices in the tariffs.
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.
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.