Top Tweets for #FakeBottom

Market Morning Round Up Oct 6, 2023 Hotter than the Sun Jobs numbers came in MUCH hotter than expected, 336k vs 170k expected. This means the fed will keep their foot on the neck of the economy through rates higher and longer. Investors biggest concern are bonds. Remember bonds are the are the tail that moves the dog. If bonds start getting aggressively crushed, the fed will have to react. Currently yields are ripping higher and price of bonds are getting crushed. Anything that gives a yield will be in question strain for the foreseeable future. The fake bottom: a few days ago I spoke of markets making a fake bottom. Many people thought the last couple of days was a fake bottom. I would be alert today that they don’t rip higher and give the illusion of a gap down, rip back up as a bottom. If that does happen, you’ll hear a lot of people say “economy is strong, employment is strong, no recession”. If that is the scenario, I suspect it will be a fake bottom and institutions will use the liquidity to sell the rip. $SPY intra day numbers: $420 is the pivot. Staying below and they will head to $418.31 which is the most important number below, big time support. Staying above, they will head up to $421.80 - $422 which is a spot of resistance, getting above will lead to $422.80. Implied move is +/-$4 so expect extreme volatility. Take small positions if you’re intra day trading. Days like today where my long term puts are making me money, I try to not make any scalps as the money for the day has been made and all I can do is give money back. Days like today are meant for taking profits if you’re short. The ultimate bear destination is $417 The trend is your friend. DONT FIGHT THE FED.

Market Morning Round Up Oct 6, 2023 Hotter than the Sun Jobs numbers came in MUCH hotter than expected, 336k vs 170k expected. This means the fed will keep their foot on the neck of the economy through rates higher and longer. Investors biggest concern are bonds. Remember bonds are the are the tail that moves the dog. If bonds start getting aggressively crushed, the fed will have to react. Currently yields are ripping higher and price of bonds are getting crushed. Anything that gives a yield will be in question strain for the foreseeable future. The fake bottom: a few days ago I spoke of markets making a fake bottom. Many people thought the last couple of days was a fake bottom. I would be alert today that they don’t rip higher and give the illusion of a gap down, rip back up as a bottom. If that does happen, you’ll hear a lot of people say “economy is strong, employment is strong, no recession”. If that is the scenario, I suspect it will be a fake bottom and institutions will use the liquidity to sell the rip. $SPY intra day numbers: $420 is the pivot. Staying below and they will head to $418.31 which is the most important number below, big time support. Staying above, they will head up to $421.80 - $422 which is a spot of resistance, getting above will lead to $422.80. Implied move is +/-$4 so expect extreme volatility. Take small positions if you’re intra day trading. Days like today where my long term puts are making me money, I try to not make any scalps as the money for the day has been made and all I can do is give money back. Days like today are meant for taking profits if you’re short. The ultimate bear destination is $417 The trend is your friend. DONT FIGHT THE FED.