I started this update Saturday morning, but didn't get very far; Picking up where I left off...
Was Friday's Trade, Just Another Short Squeeze Friday, or Could Things Be Different This Time?
I believe, Short Squeeze Friday, is a term we coined during the '08 crash; although it may go back earlier; I couldn't find any historical context for it.
I pointed out on Friday that this looked like a bear trap, and it wasn't long after the opening bell, I was able to confirm it.
The bears don't like being trapped going into a weekend, and especially, the first (trading) Monday of the month, after the long summer break.
9 Short Squeeze Stocks That Could Take Off in September money.usnews.com
All the above information I've provided over the past several months, should help you to trade future rallies that take place this time of year, if you somehow managed to miss this one.
$SPX 30 min chart - Tweeted Friday - shows exactly how the bears were trapped - as the opening bid was raised above resistance.
I think I gotta update this EW count to a wave 2. OPEX is next Friday, so makes sense that it would continue to rally into the beginning of the week, I think pic.twitter.com/MnYE2czttU
— Veteran Market Timer (@3Xtraders) September 9, 2022
2. The market also broke out above the right shoulder I pointed on in Friday's update.
3. The $SPX broke above the 50 day moving average, which triggered more buying.
Note: This morning the DOW is set to breakout above the 50 day ma...
I'm not sure if this rally has legs longer, term; resistance looks like the 4175 level on the $SPX, as seen on the short term chart above, but there's also resistance, at the 200 day moving average.
I think the catalyst for a pullback could be a week from today, ahead of the next fed announcement.
BofE also reports on the 22nd, after postponing the decision for a week, after the death of QEII.
Monthly OPEX is this Friday - looks bullish at this point - now that the bears have been trapped
FOMC meets the 21-22 - could see a pullback ahead of that. Possibly a nasty Monday hangover, after Sept. OPEX?
Oil & Energy
I'm kind of surprised we aren't seeing panic selling in #Oil pic.twitter.com/sQAldKEypl
— Veteran Market Timer (@3Xtraders) September 7, 2022
I can't say I like this rally very much, even though I made a killing trading the long side lol
— Veteran Market Timer (@3Xtraders) September 9, 2022
I decided not to pussy out of my trades, for a change. I put some protection on instead, and sitting on like +30% cash.
— Veteran Market Timer (@3Xtraders) September 9, 2022
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