NASDAQ 100From the last post, I updated it on 20th may, that it looked like a bear market rally was about to take place, which was a correct call. the target for the bear market rally is set to about 13200 and 13600. This is approximately an increase of 15 pct. and 18 pct. respectively.
These levels should spark a euphoric feeling in traders, where everybody starts to rebuy assets. But who are they buying from? the fund managers are offloading their holdings in every sharp spike and retail are buying them. This traps retail, and saves the big boiz, while retail gets f***t. Also a lot of people shorted at the bottom or between the area 11500 and 12500, so this rally is about a stop loss hunt. I expect some choppy trading to the upside.
I am hedged to the upside, but I am still net short, so if the bear market rally call goes against me, I am still short. and if the call for the downside also goes against me, I am hedged to the upside.
a win-win situation.
the economic situation is not changing soon. China and Russia are further fueling the macroeconomic crisis, and for now, we will see some relief rallies, but when the rally ends, we will go to the first down target level of 10700 as posted earlier.
