The most painful part of the short squeeze may be yet to come. Because Mario Draghi positively surprised more than the market expected and impressed with a big move by cutting the main refinancing rate to 0.0 percent and rather than buying only eurozone government bonds the ECB is extending its monthly asset purchases to bonds issued by non-bank corporations.
This will lead to a breakout beyond the 200 day simple moving average and increase the short-covering rally so much that we might see a new all-time high instead of a dead cat bounce. Thereby my bullish scenario has a increasingly higher probability to play out. Especially because historically the US stock market rallied a lot starting around 3-6 months after the first FED hike and we are now already at month number three. See: twitter.com/SPYder_C...s/677211160991555584
And we have according to Goldman Sachs a 21% chance that the "S&P 500" rallies 5% according to fundamentals (source of my headline title)
www.bloomberg.com/ne...to-buy-s-p-500-calls
I also see the "Crude oil" and "China" markets at a bottom as mentioned before and now I also see "Apple" at a bottom with the price being back above USD100.
Long-term long
Entry: Below 2000 points
Stop loss: 1888 points
1. Target: 2300
2. Target: 2600
LINKS
Stock gains continue after initial rate move
www.fidelity.com/vie...deas/first-rate-hike
The most painful part of the short squeeze may be yet to come
www.zerohedge.com/ne...e-yet-come-jpm-warns
ECB takes bold steps to stimulate eurozone economy
www.nytimes.com/2016...b-draghi-europe.html
CHARTS
This will lead to a breakout beyond the 200 day simple moving average and increase the short-covering rally so much that we might see a new all-time high instead of a dead cat bounce. Thereby my bullish scenario has a increasingly higher probability to play out. Especially because historically the US stock market rallied a lot starting around 3-6 months after the first FED hike and we are now already at month number three. See: twitter.com/SPYder_C...s/677211160991555584
And we have according to Goldman Sachs a 21% chance that the "S&P 500" rallies 5% according to fundamentals (source of my headline title)
www.bloomberg.com/ne...to-buy-s-p-500-calls
I also see the "Crude oil" and "China" markets at a bottom as mentioned before and now I also see "Apple" at a bottom with the price being back above USD100.
Long-term long
Entry: Below 2000 points
Stop loss: 1888 points
1. Target: 2300
2. Target: 2600
LINKS
Stock gains continue after initial rate move
www.fidelity.com/vie...deas/first-rate-hike
The most painful part of the short squeeze may be yet to come
www.zerohedge.com/ne...e-yet-come-jpm-warns
ECB takes bold steps to stimulate eurozone economy
www.nytimes.com/2016...b-draghi-europe.html
CHARTS
