Very short-term very oversold, also statistically tomorrow is known as a “Turnaround Tuesday”, so I see very good chances a rebound tomorrow.
An example of how oversold the market is – a short-term model from www.sentimentrader.com.
Disclaimer
The information contained on this website and from any communication related to the author’s blog and chartbook is for information purposes only. The chart analysis and the market recap do not hold out as providing any financial, legal, investment, or other advice. In addition, no suggestion or advice is offered regarding the nature, profitability, suitability, sustainability of any particular trading practice or investment strategy. The materials on this website do not constitute offer or advice and you should not rely on the information here to make or refrain from making any decision or take or refrain from taking any action. It is up to the visitors to make their own decisions, or to consult with a registered professional financial advisor.
This websites provides third-party websites for your convenience but the author does not endorse, approve, or certify the information on other websites, nor does the author take responsibility for a part or all materials on the third-party websites which are not maintained by the author.
Thanks, Cobra! CPCE is not bad today, about 0.71. I think today's action is a still a pullback. Should we buy on dip? Do you think the intermediate downtrend officially start?
ReplyDeletetest
ReplyDeleteBuy dip for a very short-term gain is doable, that's all I can say.
ReplyDeleteGame plan, if we gap down buy the dip, if we gap up and go toward low 900, short the market.
ReplyDeleteAgree. Statistically, this is the formula for trading the day after a Major Distribution Day which is day. (Most people call it 90% down day)
ReplyDeleteCPCE is 0.91
ReplyDeleteNo, CPCE readings only correct after 7:30pm ET.
ReplyDeleteDo you think it's safe to buy the SPX futures now for a very short term (10 point scalp maybe)?
ReplyDeleteBuy futures for a rebound tomorrow is doable.
ReplyDeleteBuy a gap down tomorrow will be much safer.
I did a partial cover today, and am looking to re-short tomorrow.
ReplyDeleteGLTA, but especially to those playing the long side... Yikes!