the emphasis is on "sustained". not saying market wont go to 1120 before rebounding but its going to rebound sooner than later. IMHO
I'm quite serious. I just got 2,500 shares of SPY @ $115 a few minutes ago. I post all my trades in real time (or as close to real time as possible) in another thread, and have been doing so for months. Agreed 100%. I'm drawn down quite a bit right now. I don't care. In the meantime I'm making money on the hedge and on SPY dividends, and I know that eventually price will go back up again (since price is random, or at least random to the point that I personally cannot predict it), it will go back up at some point, and I'll have thousands of shares when that happens. Believe me, if price could be predicted I would much rather do it that way and make thousands a day with 50-100 ES contracts at a time. But I cannot do it, and I haven't met anyone else who could (despite people who PM me and say they will teach me if I pay them a few thousand dollars up front, lol, gtfo with that shit).
It should all stop by SP500 at 1100. Good time to buy then. But be prepared for another downleg to 103. If buy at 110 then sit on it at 7% stop.
Why wouldn't you just trade the ES contract. The SPYs seem like a waste of buying power... you can control the leverage in futures with less size. What's your plan now with the SPYs? Minimize loses on any rallies? Become a value investor? Are you hedged well? I'm going to try to scalp on the long side but won't overstay as a bull. I remember 2008 too well... called bottoms too many times... it ALWAYS goes lower. In the event it rallies then it is what it is. I missed the move and it's fine because I didn't want to chase on the longside during a momentum sell time. We're only down 9% YTD or for 1 year. Its UGLY out there... buyer at 1108
Stopped out again here, avg 1226. Will keep the options but just gonna wait on the sidelines for now.
Don't want to deal with rolling over, and I get paid dividends on SPY. Sell for a profit at some point in the future. I'm not hedged as well as I could be, but I have no idea how low price was going to go so I closed half my hedge (for profit) a few days ago. I scaled into weighted ETFs during that recession. Scaling in because I can't call bottoms.
There's a bullshit bounce lol... I'm buying near close if we make a new low in the low teens around 1112... 1105 would be better. The SPYs got to 1120 to the tick. I average in conservatively when I try to call bottoms too. I am ALWAYS too early... knowing that I wait and am STILL too early lol. Anyone know what's up with NEM... see that hard reversal?
Market WILL close near the low (to generate long red daily candlestick with short/no lower shadow --- you can bank on this!