SOX is now up 8% from the time I mentioned it last Friday. Did you buy it??
It is entering a resistance zone @ 380-390. Coincidentally, SPX has entered 1190-1200 resistance zone. We have a melt-up, short-covering, relief rally, whatever you call it going on. OpEx is 2 days away. Do not fight this. If you are lucky to be riding this, take profits and tighten up the stops. Nobody ever went broke taking profits.
There is absolutely no doubt in my mind that we are still inside a bear flag on SPX and lower lows are still to come. This rally is nice and bears are allowed to be short-term bulls. This said, I am in no rush to sell. It is important to identify levels of support to be broken for a sell signal first. It will depend on where the rally stops. As we are approaching the end of Q3, underperforming fund managers are allocating their funds now. We may have a few days of this left, maybe a few weeks. I am no prophet, just a trader. There is no signal to sell yet. Staying long until proven wrong.
No comments:
Post a Comment