If you have been following along here and learning a little bit about how much I love our country and despise liars, socialists, communists and unfortunately by proxy, today’s democrat party
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You will also, hopefully, be following along with my Sunday Updates so you can learn how to become wealthy in today’s stock market.
And as an added bonus, you get to hear from the former trader that I once was. I do not trade anymore. I simply follow my fundamental trading methods because it works really, really well.
Once in a while, like on September 12th, I will make a call based on what I see on the charts. Of course, I was a technical trader.
Above is the daily chart of SPY, the ETF representing the S&P 500 index.
Do you see the straight down move? Tell me what has happened recently ( I really mean almost always) when the market has sold of on such a steep angle. Of course, it rallies. And it will again.
I think there is a greater than 50% chance we will blow through the June low early this week. Regardless if it does or does not, we will see a rather strong bounce into at least the 20 SMA (Blue) and quite possibly the 50 SMA (Black).
If I was still a trader, I would be buying short term bull call spreads and averaging down until the bounce comes. The very best situation will occur if we make a new low, the market makers run the stops and the market reverses.
That said, I’m glad I’m not a trader anymore! I’m an armchair quarterback!