So the Fed is now out of the way. And QE has officially ended. So what next? As I think I mentioned in one of the earlier posts, I was expecting a little more upside and then a top mid week. I think we are there. Yesterday might have been the top for this upmove. If this is correct, most likely we will see a good move down over the next week or so and then again another good bounce. Then all hell breaks loose. But lets take it one step at a time.
For now, it looks like we are going to head down for the next few days in the equity markets. A bounce will happen from some level. For now I am thinking 1920-1900 area in SPX as the most likely target area maybe by end of next week. Then lets evaluate again.
Now above is just a prediction. I dont trade on predictions alone. Its just an idea. Trading is more about controlling risk and capital protection. This is the reason why I have diversified into more ideas. Gold for example is heading down in earnest. I have puts on NUGT - which are doing exceptionally well. Then I have shorts on OIH/oil. And I think I already mentioned the GPRO put spread which is also doing very well. I also have a few bearish positions on the index which at the moment are not doing great but I expect them to come back soon.
The next few weeks are going to be very interesting I believe. While I am bearish, the seasonality effect is important to watch as well. For this reason I will be watching the internals very carefully to see if the outline I have above is going to work or the market has something else in mind.
Best,
PM
For now, it looks like we are going to head down for the next few days in the equity markets. A bounce will happen from some level. For now I am thinking 1920-1900 area in SPX as the most likely target area maybe by end of next week. Then lets evaluate again.
Now above is just a prediction. I dont trade on predictions alone. Its just an idea. Trading is more about controlling risk and capital protection. This is the reason why I have diversified into more ideas. Gold for example is heading down in earnest. I have puts on NUGT - which are doing exceptionally well. Then I have shorts on OIH/oil. And I think I already mentioned the GPRO put spread which is also doing very well. I also have a few bearish positions on the index which at the moment are not doing great but I expect them to come back soon.
The next few weeks are going to be very interesting I believe. While I am bearish, the seasonality effect is important to watch as well. For this reason I will be watching the internals very carefully to see if the outline I have above is going to work or the market has something else in mind.
Best,
PM
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