Can you really do W bottom?
$S&P 500 Index (.SPX.US)$ The increase is very good. Today it can be counted as 4000. If it really soars back to 4100 as hoped, $ProShares Ultra VIX Short-Term Futures ETF (UVXY.US)$There is still a high probability that it will return to 4.4 to the bottom of W. Looking at the amount of increase in the previous wave, the 100% drop was basically 4.4.
Although it is bullish in the short term, now is definitely not the time for S&P to chase higher. Wait until UVXY falls to 5.0 and buy some. It's actually around 4.4, but it's still half dry... in the medium to long term, it's still bearish for S&P to 3300
Although it is bullish in the short term, now is definitely not the time for S&P to chase higher. Wait until UVXY falls to 5.0 and buy some. It's actually around 4.4, but it's still half dry... in the medium to long term, it's still bearish for S&P to 3300
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reliable Hippo_k4d : UVXY is oversold in short term, will probably renounce back to 6.2 at least or to 6.6 before then only draw back to 4.8 to 4.4 range. Same overbuy trend can be observed in S&P.
爱好者 OP reliable Hippo_k4d : That's right. UVXY was oversold for a short period of time, and S&P was also overbought. In fact, with such a sharp rise today, I don't think the FOMC has had any good results... the market should reverse in the next few days. I think the UVXY pressure is 6.6-6.8? (Maybe optimistic) I want to say that after this wave is over, the medium to long term will decline and become a W bottom, and there is still a chance to enter the market by more than 4 yuan. UVXY fluctuates dramatically indeed. I should let go of this fluctuation and wait until the decline is in place before entering the market.
reliable Hippo_k4d : 6.6-6.8 is optimistic for me too haha i actually see it hit the previous high of 7. Perhaps near 6.8 i will start building put option for UVXY again. Currently hold on call option of UVXY when it was 5.4
reliable Hippo_k4d 爱好者 OP : Agree that the FOMC will not have good result. Powell has previously mentioned rate hike is necessary to counter inflation. I dont think he will slap himself again this week.
Also not only S&P is overbought in short term. The same short term overbought can also be observed in DJI and QQQ.