This morning, futures wanted to start the SPY higher over the 293 and over the 50ma.
But they promptly sold back down, on accelerating volume. The intraday bounce so far is strong, but on weaker volume.
If this situation doesn't improve fast, it could get UGLY for markets. That means Powell needs to sound very dovish tomorrow. My guess is, they are reluctant to do that. They want the markets to crash, pin it on Trump trade wars, and save their ammo for a real, deep crash.
If I were to try and enter "heroic shorts" to bet on the next big crash, it might be today, or right now at 293 resistance. But that's a fool's play. I'll just watch the SPY. Plenty of terrible companies to short instead, or I might short a weaker sector like the IWM.
But they promptly sold back down, on accelerating volume. The intraday bounce so far is strong, but on weaker volume.
If this situation doesn't improve fast, it could get UGLY for markets. That means Powell needs to sound very dovish tomorrow. My guess is, they are reluctant to do that. They want the markets to crash, pin it on Trump trade wars, and save their ammo for a real, deep crash.
If I were to try and enter "heroic shorts" to bet on the next big crash, it might be today, or right now at 293 resistance. But that's a fool's play. I'll just watch the SPY. Plenty of terrible companies to short instead, or I might short a weaker sector like the IWM.
Truth be told I've been fully deployed long gold miners and shorting TSLA. Today was a good day.
Maybe I wish I bought 0-day AMZN puts that went nearly 30x? Okay, that's greedy. Way too risky to be any repeatable strategy. But today was a good day.
I don't think the decline is over. It's a low volume Friday. Fundamentals are re-asserting themselves after 2 weeks of chop.