Reasons to be Bullish on SPY

Here are the top 5 main reasons to be bullish on SPY :

1. Oil has peaked. If it isn't obvious to many by now, WTI1! and XOM have peaked and it's starting to show in the real world. Gas prices are down substantially than their highs just a month ago and this was one of the main things holding the market down for the previous months. All oil needed to do was show it's done running up for the markets to get relief.

2. Many big names are showing support-building at their 52 week lows. Take a look at the TSLA 4h chart for example, it's built an entire base at it's 52-week low and seems to have failed multiple times to break the 600s - bullish. MSFT has also slowed it's downward trajectory at its 52-week low - bullish. Many other stocks are looking like buy opportunities for the longer term.

3. The inflation has peaked narrative. It's going to be tough to get a number worse than 9.1% in August. Do you really think the August report will be 9.5%? 10.3%? It's unlikely to top 9.1%. The next CPI report is likely to come in less than 9.1%, and the market will realize inflation may have just peaked.

4. Supply chain issues seem to be easing. Supply chain still has issues and doesn't have to be perfect, but if the market senses that inventory issues at companies are starting to clear up, it will react ahead of time.

5. With all the bad news the market has received this year, you would think things are exceptionally bad. The Ukraine war, ATH inflation, supply chain issues, lay offs happening at several big companies. Despite all this, SPY is only down 20% which is standard for a good correction. If things were truly awful and the market wanted to price it in we should be much lower than where we are now. Since we're not lower than 20-25% off the ATH, the market may be signaling things aren't as bad as they're reported.

Like if you agree and comment to tell me reasons why SPY is bearish instead!

Comment:

Great week to be long SPY. I would go a bit further out on expiration to give yourself plenty of time, september or october. At the money or in the money would be better. Target is 400 by end of month. I will wait for the pullback to 384-385 area to make my first entry in October 375 calls.

For a day trade you can short this to 385. Don't do 0DTE.

Comment:

I'll open some longs at 385.25 but this may actually overshoot a bit down to 383.00-383.99 possibly by EOD or tomorrow so I might add more if it gets there. Beautiful little dip for reloading.

I opened shorts at 388.6 earlier today I closed them a bit early at 386 for a small profit.

Comment:

Triple tops are very uncommon in SPY so I'm holding on! Using today's profits as buffer for calls I opened at 385 and 383 which are currently red.

Comment:

All three of my longs will open green today. If you didn't add calls on that drop yesterday I don't know what to tell you. I know I loaded up. They give it to you on a platter. I will a new idea post market today.