Is Market looking green for October?
As I have mentioned in my previous posts. The market will never work in the favor of obvious decisions. The example of this can be seen by hiked on the battery event for tesla. Where most of the people have bought calls of tesla making it too obvious to fall stock to this low. The principle of the working market is to have transactions and price set, where some people lose money and others gain the equivalent amount which is lost. The funds will travel from one hand to another, it will not be created. Thus, it is never a good idea to follow the crowd in the stock market(it might be good upto some extent). But the most accurate decisions are those where we know that people are going for the North and we are going to south. It might be hurtful for some time but this idea is sure to work out. Considering any long position holders(2-10years) in the equation. Which cannot be possible at the current stage because currently everyone is in the need of money. Thus every positions are taken on the market could possibly be a short term positions.
Thus, the most obvious decisions people are making right now is to buy puts and sell the futures of the s&p index. This has created a huge volume segregation of shorts pressure on the market.
The idea is not about the long term, since in long term 6-8months the market is sure to fall. But will reach another green level before the final fall. This is a time when most of the people are confident to invest long in market.
There is a quote which says, if people are in fear, buy long and if people are confident, do not invest. This quote explains the fundamentals of working market. This explains how the people in fear closes their short positions which will make the market to go up. It does not necessarily means that if people are confident then the market will fall, because the people can be long term investors and short term investors, so either they close their positions or hold it in the end of the day will make the market go up or down. Thus, it is suggested not to trade in a obvious confident market.
The idea which applies to the current market is, in the current situation with pandemic, unemployment and the GDP. It is too obvious that people(traders and organizations) have been accumulating(since March) large amount of shorts positions, put positions and future sell positions on the index. Which has built up the pressure in the down tread makes it harder to settle in lower position, In my suggestion this will just force the index to go upward and cross its previous high within 2 months, to settle the options, futures and then will make the final fall.
This is just my own opinion, since I like to figure out the macro trends based on the decision making. Moomoo community can take advantage of this short term uptrend move to her huge profits. It is just a suggestion that getting call options will be a good choice since, the maximum loss will be the call premium(if this theory won't work) and thus can be useful in taking advantage of this possibility.
Happy trading!
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PREMOSULTRAA : IMO be the early confident one and take advantage from the obivous market flow works too.
70070259 : Buy S&P 500 ETFs and don’t worry about what happens to the market.
70121236 PREMOSULTRAA : They both work soo beautifully when work together
StrungOutNY : Good read!
The future is looking grim, IMO... So I've been putting some work to the side and spending more time on my research and trading NOW, so when the inevitable happens, I will hopefully have a nice stockpile of cash ready to go! 
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DJLadyShiz : I hope the market gets better because this week has look very scary
Gregory Cox : you ask is market green for month 10?
Heck YES .its going to be greener then green Clover four Leif Clover that is.
and I want to say. you moomoo's are a vary good group. and thats just about the best thing . thats to the moon its self. I have no doubt oct.will be vary green you all have it coming. believe and it will happen. thank you for letting me be part of this plat form.
Im green ass goose crap. Im hungary starving to learn and be a wise invester.
one day one day all our dreams will come true. time to shut up. lol.
Gregory Cox : moomooer's. Can I ask of you ? If I do something wrong dumb. please tell me .
Advise I believe is the gratest thing .
I love Advise for you can take it our leave it. I know I make mistakes.its sometime knowing the mistake one made.the sooner one knows .I believe the better. Thank you . good people.
Anonymoo OP : Hi Gregory, this stock market can be very frustrating thing. Because, sometimes when you start loosing money, you will wait for your position to go back positive again, but then you loose more and more and then you close the position and then it starts to go up.
This is a macro world, everything works on supply and demand. Outside or in stock market.
So, it is like consider your decision as a statistical sample(group) of say 1000 people who are doing the same thing and closed at exactly same time when you did. Now, suddenly, the market is overflowing with supply of stocks, thus the larger firms will try to regulate it with buying enormous amount( or sometime traders feel its a good deal and jump it to buy all stocks too, these are one of many things that can happen), that will mark shortage of the stocks. You know what means the shortage of something, more demand. And you know what more demand means, high price. This is what happens in the corporate world, traders like us are trying to put a bait(your own money) and try to catch the big fish(profits).
consider we are fishing in the river, so if you don't put your bait on correct time you will lose your bait. So, we study here when to put a bait in, some put costly bait to catch big fishes some put small bait to catch small fishes, and some will not care about the right time and wait for longer time to get a bigger and better fish(long term investors) even their bait gets damaged by the flow.
Shane Belleville : i believe so the market will be goin up of course in certain catagories. biomets. sunrun my game changer. but im more options.
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