Hello
Over the last couple of weeks, we have seen the S&P 500 make a nice rally more than 30 percent from the low we saw in late march. Now the price has come to the 0.618 fibonacci retracement level, and we could see some bearish price action in this area. Now could therefore be a good time to take some short positions in either the SPX or SPY themselves, or in individual stocks.
There are a lot of bearish signals (as shown in the analysis) that would indicate a fall in the price, but the market could easily just break this level, and continue its rally back to the highs.
Since we don't know where the market is going, having a diversified and hedged portfolio is the right approach to these conditions (in my opinion).
That is why this post is not a trade idea but simply a analysis of the current market conditions and a guess of where the market could go, and what we could do to prepare for what could happen.
Over the last couple of weeks, we have seen the S&P 500 make a nice rally more than 30 percent from the low we saw in late march. Now the price has come to the 0.618 fibonacci retracement level, and we could see some bearish price action in this area. Now could therefore be a good time to take some short positions in either the SPX or SPY themselves, or in individual stocks.
There are a lot of bearish signals (as shown in the analysis) that would indicate a fall in the price, but the market could easily just break this level, and continue its rally back to the highs.
Since we don't know where the market is going, having a diversified and hedged portfolio is the right approach to these conditions (in my opinion).
That is why this post is not a trade idea but simply a analysis of the current market conditions and a guess of where the market could go, and what we could do to prepare for what could happen.