After collecting all the data, I found that the market wasn’t as oversold as I thought. Well, yes, it’s possible we’ll see a Monday bounce at least in the morning. But, do you really want to buy this dip? SPY still has 7 unfilled gaps so if Monday gaps up then we all know that this 8th gap won’t hold therefore you get a sell opportunity anyway with much lower risks since you don’t need to hold your long through long weekend. And what if Monday gaps down? Well, if you really want to buy the dip, that gap down gives you even better entry, right? So my guess is no hurry actions in AH.
After looking at the following ISEE table, which shows that retailers are so bullish, you might have a 2nd thought about buying this dip too. Also remember discussion here about when All Indices and ETFs only readings are above 100?
Oh, Firework trading officially ended in the morning when the market gapped down. It’s the 3rd failed setup. But still we saw an intraday “firework” Wednesday, didn’t we? No excuse, there’s no perfect trading setup. Enjoy your long weekend.
18 Comments