Today on paper, we had a great market, Dow up 92 and S&P500 up 7, Nasdaq only up 0.1%, but it's worse than that, both my IWM and MDY calls went down hard at the end of the day. This tells me something.
- It looks like the market is again showed weakness. Just like a few weeks back, in late June.
- So I expect a pullback near term, just like late June, if not bigger.
- Earnings will sure put more fire on the move, we should break the range (S&P500 1530-1554) soon, as early as tomorrow to the down side.
- So my action should take the calls out today, and I didn't. But don't let one day mistake ruins my judgement.
- This is very important, if I was wrong, just correct the mistake by selling the positions.
- After that, I can decide what to do next, currently I'm leaning to short again.
Edit:
I checked, the last time we had a IWM down and S&P up, was in May, and finally the IWM and MDY caught up with SPY higher. So this is still a possibility. If this is not the end of this bull run, we'll have another push higher to new highs.
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