80% Chance Of Showers and Down Move
Without posting proof of such a claim, I don’t feel like posting a screenshot, but the COMPX is overbought here. More than not, alot more, we will see a pullback in the market over the next 5 days. It tends to come quickly when it does. I’m short via 2x NDX and RUT funds, bought QQQ puts at close. Sold all open positions mentioned yesterday – today. I rebought the short trade > QQQ puts because of the signals I’m seeing on the COMPX. It is a systematic trade and I need to hold out for 5 days or less. If the pullback is mild we should explode to the upside when its over. If the pullback is significant, there is a solid chance this early January movement is nothing but a bear rally.
Again, without posting a chart here to show my thesis, I’m sure it seems hogwashy. Maybe I’ll post it tomorrow.