Indeks S&P 500Penjualan
Selling takes time too....
Diupdate
Haha, I had a few PM last nite from a few followers asking me why my analysis on DJI, SPX500 were way off from the market!
First thing first, I can't predict the market moves (If I can, I will be hiding somewhere and making tons and tons of money like the Feds busy printing money). So, getting the trade setups wrong is part and parcel of the game.
Next, like buying, the path going up also requires resting point (call it pullback) where it allows traders to take profits or add in their longs or for the late comers to join in the bandwagon.
It is the same when comes to selling as well. As this selldown since the Covid-19 has been a sharp plunge, the correction too will be fast and furious, sometimes retracing more than 50% of its fall.
So far, it has retraced 21% from the bottom.
How do we proceed from here ?
1. Wait for the price action to breakdown from the green trend line.
2. See the price action at level 2662 and 2774. These are the resistance area.
There could be a short term buy for those who are keen after it has closed above the resistance level. I won't encourage it but to each his own, so long you have a clear strategy and employ SL.
Of course, it is hard to tell if the market has bottomed and this is the beginning of a V-shape recovery or just a correction ! Some value investors who believe in averaging down by allocating a certain portion of their war chest will start to pick up some good companies to buy.
To long, you want to buy low , sell high. To sell, you want to sell high , buy low. So, this pull back is good for me as I think there is still room for the indices to fall further. The fundamentals do not support the reasons to long although the price action shows conflicting story.
Now, I am looking at the chart and waiting for the signal to sell.
First thing first, I can't predict the market moves (If I can, I will be hiding somewhere and making tons and tons of money like the Feds busy printing money). So, getting the trade setups wrong is part and parcel of the game.
Next, like buying, the path going up also requires resting point (call it pullback) where it allows traders to take profits or add in their longs or for the late comers to join in the bandwagon.
It is the same when comes to selling as well. As this selldown since the Covid-19 has been a sharp plunge, the correction too will be fast and furious, sometimes retracing more than 50% of its fall.
So far, it has retraced 21% from the bottom.
How do we proceed from here ?
1. Wait for the price action to breakdown from the green trend line.
2. See the price action at level 2662 and 2774. These are the resistance area.
There could be a short term buy for those who are keen after it has closed above the resistance level. I won't encourage it but to each his own, so long you have a clear strategy and employ SL.
Of course, it is hard to tell if the market has bottomed and this is the beginning of a V-shape recovery or just a correction ! Some value investors who believe in averaging down by allocating a certain portion of their war chest will start to pick up some good companies to buy.
To long, you want to buy low , sell high. To sell, you want to sell high , buy low. So, this pull back is good for me as I think there is still room for the indices to fall further. The fundamentals do not support the reasons to long although the price action shows conflicting story.
Now, I am looking at the chart and waiting for the signal to sell.
Catatan
We shorted around 2597 level and the price is 2479 now. By the grace of God, our continued holding instead of cashing out yields us more profits than we thought.
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