SPY - Nice pop and pullback today! Another pop tomorrow?
This morning provided a very nice and profitable pop. The sell zone worked nicely for us near todays highs.
After dropping quite a bit, I tried to buy the call options at the lows, but just watched the market crumble 2 times on me.
It seemed like every time after the buy, the the initial bounce just bleed off lower than than the buy point. That forced the "sell to close" on the secondary bounce, each time.
I Should have simply bought puts and let the market chop/ chop all the way down :)
I believe that the blue Cypher Pattern is in play now.
I have 150 April call options now, so we'll see what tomorrow brings.
I'm looking up for the finish of the pattern near point D. I'll call that wave C of the ABC pattern up.
In the bigger scheme of things it is Very Important to remember that we are in a Bear Market now.
Especially watch the black line that has provided support since the Dec 24 lows as shown. When we broke down through it, it is the early signal that the market is now in a retracement mode... think "bounce".
Although I am bullish now, it will be a short lived position. When we get near the sell zone completing the Cypher pattern, we should get ready for a another long drop to the lower end of the Gartley Pattern (as partially shown by the red pattern).
Again I have money on the near term up move (call options), but will be ready to pivot and go short very soon with put options.
This Old Fart pattern could be very profitable ... (Or I could totally screw up)
After dropping quite a bit, I tried to buy the call options at the lows, but just watched the market crumble 2 times on me.
It seemed like every time after the buy, the the initial bounce just bleed off lower than than the buy point. That forced the "sell to close" on the secondary bounce, each time.
I Should have simply bought puts and let the market chop/ chop all the way down :)
I believe that the blue Cypher Pattern is in play now.
I have 150 April call options now, so we'll see what tomorrow brings.
I'm looking up for the finish of the pattern near point D. I'll call that wave C of the ABC pattern up.
In the bigger scheme of things it is Very Important to remember that we are in a Bear Market now.
Especially watch the black line that has provided support since the Dec 24 lows as shown. When we broke down through it, it is the early signal that the market is now in a retracement mode... think "bounce".
Although I am bullish now, it will be a short lived position. When we get near the sell zone completing the Cypher pattern, we should get ready for a another long drop to the lower end of the Gartley Pattern (as partially shown by the red pattern).
Again I have money on the near term up move (call options), but will be ready to pivot and go short very soon with put options.
This Old Fart pattern could be very profitable ... (Or I could totally screw up)