In yesterday’s post: Wednesday, 2/24/16 – Nailed the S&P500 Downside and Rally, As Predicted Yesterday, we had some great charts on the c-wave down that we got, followed by an enormous rally. We’ve been expecting this market to go over 1950 all week — it’s just a matter of when and how.
This morning, we had a corrective consolidation before noon – then in the early afternoon, we resumed our upside rally towards our target of at least 1950.
Guess what — today close, we hit 1950.
I didn’t expect it to happen this soon. The earliest i was expecting was perhaps tomorrow Friday — certainly by next week. But wow, how powerful this rally is to already be here at 1950.
I think this rally has a little bit more to go, especially because this rally is only in its second day. I would expect this should at least go through tomorrow Friday and potentially over the weekend. After that, however, I think it is important to look more carefully at the pattern and see where the market may potentially turn. If it does, we could hit new lows in coming months. If it doesn’t turn, heck, this rally could go over 2000 – though I’m not expecting that at the moment.
Wow, this week, we initiated and alerted 3 trades — or was it 4? I’m losing track. All of them profitable and reaching max profit. Two of them still with room for additional profits even if we stay flat. I hope we can benefit from time decay over the weekend should this rally continue.
Some subscribers have been asking why we don’t recommend naked long calls — I try to recommend conservative plays to make sure the trades are at least profitable. Personally, yes – I also bought calls. Feel free to do similar bullish plays when I initiate bullish trade – especially when I add to it multiple times as I did these past few days. I just want to make sure new people putting on the trade don’t lose money. Don’t want to get too greedy esp with recommendations as I kind of have a moral fiduciary responsibility. But if market moves down later, I will recommend naked puts. I just didn’t want to recommend calls in what I see might be a bear market.