Unbelievable how we’ve had 2 times North Korea news in the last week or so – and both times were buying opportunities.
The first time only temporarly brought the market down to 2420 ES – but from there it rallied all the way towards 2480 ES — a 60 point rally.
The second time – the market only fell intraday — here’s a picture of CNBC during this intraday drop to 2445 ES. Of course, this turned out to be a buying opportunity as the market rallied into the close over 2460 ES- and hasn’t dipped back down since.
What the heck is going on?
Every time there’s supposed to be fear — it only lasts for a few hours – and then we had back towards stock market highs.
Makes no sense to me.
In terms of chart analysis – it could be a potential series of B-wave highs.
There was one bullish setup – with a 3rd wave up – which would have indicated a premature end of the 4th wave – and that we are already in the 5th wave up. If that were the case, the orange arrow should have followed. While it still is a possibility, the odds are slightly reduced the longer we stay in this 2460-2470 ES region.
Also, with Hurricane Irma approaching Florida – make sure y’all stay safe. Having just moved to Miami, this is my first hurricane – of course they give me the biggest one right away. A 10 hour drive from Miami to Atlanta became an overly exhausting 22.5 hour drive with all the evacuees in traffic.
Looks like the storm is projected to go out west
You would think with a storm that had sustained winds of 185 mph for 35+ hours (longest in history) – that the market would price in some fear — but no, market keeps marching higher with its own mind.
This past week, we alerted SPY puts at the market open on Tuesday September 5 – and we exited half perfectly at the 2445 ES lows around 1pm.
So we took profits on half of the $1600 unrealized gains at that time – so about$800 — too bad the market came back up – which is why it’s important to take some profits when we touch into support zone – which is what we did with member trade alerts this past week.
The bullish setup almost liked it was playing out – but the market appears to have stalled in this 2460 region for some 5+ days already.
My preference is down, but really it should have happened already. Still we can be patient as long as we monitor risks to the upside. Bears would not want the orange arrow region over 2470 ES to be breached.
Silver is now at 18
Recall our alert back at 16.15
and the corresponding commentary in chat. Selling half all the way up and letting the other half ride out seems to be working so far.
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