Rough Week Ahead...
As I mentioned last week, I expect the chances of a downside breakout of the 2100-2050 price channel to be higher than the chances of an upside breakout and it was indeed so last Friday.
Last Friday, the market succumbed at last on strong volume, breaking out downwards as prices continually failed to make a new high, resulting in a series of declining peaks since November. Bond yields collapsed across the board as investors rush for the safety of bonds and total equities put call ratio also remained in favor of put options trading. All in all, a truly bearish day, setting the stage for much for downside to come this coming weeks.
This breakout could also be a precautionary move as the market heads into this volatile week. An FOMC announcement and Quadruple Witching week (Learn more about what Quadruple Witching is). However, following such a strong down day, I won't be surprised to see some accumulation on Monday but that kind of accumulation, if it happens, would still be minor in the face of the downside to come... yes, the market is going to go down hard from here... no doubt about this and I see the testing of the October low in the horizon as market crash year looms. This is the time to use every positive day as exit for longs and long calls and to position with put options. Yes, bear markets and crashes are great time to make money with options as volatility surges and put options lifted. However, doing so does take expert timing and most people simply recognize it only when its too late. I am positioned myself and my subscribers to profit from the coming crash. Are you on your own? Join me now! Master's Stock Options Picks service!
Market Crash Timer: ORANGE
For now, the market turns short term bear trend within an intermediate and primary neutral trend.
Last Friday, the market succumbed at last on strong volume, breaking out downwards as prices continually failed to make a new high, resulting in a series of declining peaks since November. Bond yields collapsed across the board as investors rush for the safety of bonds and total equities put call ratio also remained in favor of put options trading. All in all, a truly bearish day, setting the stage for much for downside to come this coming weeks.
This breakout could also be a precautionary move as the market heads into this volatile week. An FOMC announcement and Quadruple Witching week (Learn more about what Quadruple Witching is). However, following such a strong down day, I won't be surprised to see some accumulation on Monday but that kind of accumulation, if it happens, would still be minor in the face of the downside to come... yes, the market is going to go down hard from here... no doubt about this and I see the testing of the October low in the horizon as market crash year looms. This is the time to use every positive day as exit for longs and long calls and to position with put options. Yes, bear markets and crashes are great time to make money with options as volatility surges and put options lifted. However, doing so does take expert timing and most people simply recognize it only when its too late. I am positioned myself and my subscribers to profit from the coming crash. Are you on your own? Join me now! Master's Stock Options Picks service!
Market Crash Timer: ORANGE
For now, the market turns short term bear trend within an intermediate and primary neutral trend.
posted by Jason Ng at 5:37 PM
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