This. The V team has yet to suffer a real defeat yet. Sure we are seeing cracks and bigger down days for the first time since the summer, but we keep fighting back and forcing a V when you least expect it. You think you finally have it and then the V comes.
Well, yeah, but in the meantime you're also getting gang-raped. LOL Regardless, if I were you, I would stop rationalizing and start saving for a rainy day.
This is the mindset that causes traders to suffer losses when the markets switch from bullish to bearish. Riding it to the bottom thinking it’s going to “V”, which it will, but the Vs begin to not hold and trend south over the long term. The more stubborn the mindset, the worse the losses are. The trend is your friend, and more importantly, trends do change. It’s usually pretty obvious when a bear market or good size correction is about to happen. The signal is when folks are making comments such as “this thing will never go down, it’s always going to V”, etc. To me it’s looking like the excitement of finally knowing who the next administration will be and the fact they are business friendly has wore off quickly for investors. The Santa Claus rally came early and may have already ran its course for this election cycle. And with the news reporting the next administration having grandiose agendas such as strong tariffs, placing burdens on entire business sectors, taking over other countries (lmao), etcetera; it would come as no surprise to me if investors begin losing confidence which may help usher in a downturn or worse.
Truth be told, you will see much bigger short squeezes (or V's) in a bear market than in a bull market. Hence why a bear market is so dangerous to new traders. So if you really wanna see a MASSIVE V's, you'll definitely wanna stick around until we're in the bear territory. LOL
Selling into NFP seems like the probable pattern - as suggested on Sunday. NFP will trigger a rally or further selling. My simple guess is that this week may very well end up an Outside Week taking out 5830 on SPX, but I'm not married to that view. Next week, there's CPI/PPI on Tuesday/Wednesday. Brace yourself if those numbers come out hot. Yes. Yes. Yes. Even during last year's bull run you'd still need fairly good timing as a bull in order to not blow up. I would have understood it if @v-shape-0DTE was a newbie who started trading in 2023, but he claims to have been doing this for a long time. Yet he's acting like it's the first time we've had a strong bull market ever.
V team has showed up for their shift. They saw the 50 day MA and said we are buying the shit out of the dip!
You said the same thing 24 hours ago, right after that previous statement ES started going down for 70 points.