$SPY While the short was magnificent over night.
There are a few things that now suggest that short side isn't favorable.
For continuation down of wave 3(see quoted tweet). Sellers needed to print a 1,2 count today. Though it looks like they have. Its not valid, but why?
The internal wave 1 was $18 (todays move down into lows).
The parent wave 1 was $15(ended Feb 17th).
The books states the probability drops when the internal wave 1 is larger than the parent wave 1 for a nested 1,2.
For those of you that have been following me for more than a week. You should recall that I mentioned my issue with the bull count prior to today is that wave 2 was only 45% in depth. (see here -> https://t.co/6fXyebBmtD)
A shallow wave 2 only happens about 12% of the time.
Well after today... we have a proper WXY count and a 50-61.8% retrace which happens about 73% of the time while creating a really nice bull flag structure in the process.
There is also a clear bullish sweep reversal of those equal lows back into monthly value taking place into close at this time as well.
With an obvious impulse up since NOV lows now looking like a leading diagonal rather than an ending diagonal and a clear corrective structure.
I have to favor the bullish outlook here and a rebid of the 50D EMA will further confirm that.
I'm only in calls for a couple of stocks right now and have no position on $SPY at the moment.
Everyone was shilling $XPEV two weeks ago at 28 after Bloomberg came out with an article. Exit liquidity secured.
-30% in two weeks for a stock is crazy. Everything is trading like a memecoin these days.
If everyone is talking about it, who is left to buy?
$XPEV was another where I felt like I might be taking premature profit, my fomo at the time was palpable
But I forced myself to remain conservative with exits and get out while ahead
Slammed since then