Caught the Turn, Now Lets Eat…
Perfect catch of the turn. Having switched from net short to net long mid day and scored doubles on both sides is excellent for a typically uneventful Wed. Nevertheless, should have crushed it beyond what was achieved. Seems like overly cautious following prior 8 weeks of illiquid activity. Taking trades way too early. You gotta let em run much longer and farther. Usually, I switch modes from reversal trading to momentum based strategies a few days into a confirmed move. Instead, proceed on basis that reversal has been confirmed.
All the breadth, psychology/sentiment, volume and macro variables lined up over past two sessions. Should have held a massive book of overnight longs, as AAPL and JPM post market news will create a massive gap to the upside. Dimon buying 500,000 shares of JPM is huge news.
AAPL’s numbers reflect how CEO’s have brought expectations as low as logically possible, and from here, we are destined for upside surprises. I think market is past the 2/3 mark of the “accumulation” phase. As stock dries up, we’ll rally to areas that will shake more loose via profit taking from fast money, weaker players. Definitely heading into the last stretch of accumulation before we see major mark-up in stocks. I’m Concerned that another major chunk of this move will be in the overnights.
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