Still a bull market?
I am shorting the market here.
This action is to protect our portfolio from any downside in the markets and is based on some patterns that we have seen. Many would believe that this bounce is a return of the bull market, but actually following Dow Bear Market Theory, this bounce is within the rules before a further move down to take out our lows.
Nothing is certain in investing, and there is no crystal ball, only rules, strategies and risk management. The probability *chance* attached to each outcome should be carefully considered. I give this a moderate chance of happening and for that reason I am opening a short $SPX500 .
Fundamental factors for my short include
-Inflation is highest in years, not likely to stop and Bank of England will be one of the first in the G7 to increase interest rates. It's logical to expect other countries to be following suit shortly and If the US fed increases it which can occur, the market will fall.
-September/October typically tend to be volatile months with little in the way of gains.
-Oil reaching a point where it can reverse sending the USDOLLAR soaring which would take stocks down with it.
-VIX is reaching a historic buying level, which typically signals a market pullback.
Overall my portfolio is set to be safe from a market fall, leveraged to benefit from crypto and gainful in a stronger dollar with FX trades open.
I am shorting the market here.
This action is to protect our portfolio from any downside in the markets and is based on some patterns that we have seen. Many would believe that this bounce is a return of the bull market, but actually following Dow Bear Market Theory, this bounce is within the rules before a further move down to take out our lows.
Nothing is certain in investing, and there is no crystal ball, only rules, strategies and risk management. The probability *chance* attached to each outcome should be carefully considered. I give this a moderate chance of happening and for that reason I am opening a short $SPX500 .
Fundamental factors for my short include
-Inflation is highest in years, not likely to stop and Bank of England will be one of the first in the G7 to increase interest rates. It's logical to expect other countries to be following suit shortly and If the US fed increases it which can occur, the market will fall.
-September/October typically tend to be volatile months with little in the way of gains.
-Oil reaching a point where it can reverse sending the USDOLLAR soaring which would take stocks down with it.
-VIX is reaching a historic buying level, which typically signals a market pullback.
Overall my portfolio is set to be safe from a market fall, leveraged to benefit from crypto and gainful in a stronger dollar with FX trades open.