let's talk about money rotation for a minute.
someone brought up this nikkei chart to me last night, and told me it is close to seeing a strong reversal, after taking a deeper look into it, i will have to strongly agree with their statement.
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notice how the es chart has been going up for the last 189 days, while nikkei has been slumping for this same duration of time.
the indicator i use on all my trades is flashing a weekly buy signal right now for the first time since the covid crash on nikkei - see below the reaction it saw after this buy signal was triggered the last time around.
Hang Seng (Honk Kong Index) has the same weekly buy indicator, and it's also sitting at the 0.618 wave (2) target.
the theory is, since market maker doesn't want the market to just crash randomly - instead what they're going to do is rotate money into the next profitable area (slowly) - which in turn will create prolonged sideways chop \ a weak downward trend similar to what nikkei has been seeing over the last 6 months or so. not sure how long this is going to last, but i favor this scenario over a market crash any day - for the sake of the people, and for the sake of selling iron condors on spx 3 times a week 💸
curious to see how this will play out, but that's the primary scenario as of right now. if we happen to see a sharp correction as mentioned in my previous post, then i suppose we can invalidate the theory stated here.
also, a flat correction would greatly benefit the longer term bullish trend, as we would be able to build a very strong base up here, before the last push to 5000~6000 in the years ahead.
ps. if you wanted to try and catch some gains from the nikkei play, you could try picking up some december\january calls on $EWJ - they've some very low iv right now, and it could work out very nicely as a hedge against our flat corrective phase.
someone brought up this nikkei chart to me last night, and told me it is close to seeing a strong reversal, after taking a deeper look into it, i will have to strongly agree with their statement.
---
notice how the es chart has been going up for the last 189 days, while nikkei has been slumping for this same duration of time.
the indicator i use on all my trades is flashing a weekly buy signal right now for the first time since the covid crash on nikkei - see below the reaction it saw after this buy signal was triggered the last time around.
Hang Seng (Honk Kong Index) has the same weekly buy indicator, and it's also sitting at the 0.618 wave (2) target.
the theory is, since market maker doesn't want the market to just crash randomly - instead what they're going to do is rotate money into the next profitable area (slowly) - which in turn will create prolonged sideways chop \ a weak downward trend similar to what nikkei has been seeing over the last 6 months or so. not sure how long this is going to last, but i favor this scenario over a market crash any day - for the sake of the people, and for the sake of selling iron condors on spx 3 times a week 💸
curious to see how this will play out, but that's the primary scenario as of right now. if we happen to see a sharp correction as mentioned in my previous post, then i suppose we can invalidate the theory stated here.
also, a flat correction would greatly benefit the longer term bullish trend, as we would be able to build a very strong base up here, before the last push to 5000~6000 in the years ahead.
ps. if you wanted to try and catch some gains from the nikkei play, you could try picking up some december\january calls on $EWJ - they've some very low iv right now, and it could work out very nicely as a hedge against our flat corrective phase.