MASSIVE BOTTOM in the SP500?
Atualizado
I was not looking for a bottom in the SP500, but for Relative Strength in Gold with the relative Strength line from Trader Lion´s Indicator, on the weekly timeframe.
Yet I noticed that the last peak in Relative Strength in Gold was on march 16th 2020. This made me curious so I went back and looked at all RS Peaks from 2008 till now, and they all coincided with bottoms in the SP500 to the very day.
Some of those bottoms were absolutely massive buying opportunities: 2/3/09, 6/28/10, 2/1/16, 3/16/20, I also counted the peak on 12/17/18, despite a missing peak signal.
Two Peak Signals were wrong or early, for example we had a signal on 3/9/20 (7 days before the real signal and real bottom), and one signal on June 6th 2022, so 7 days before the signal we got right now, on 6/13/22.
I also want to point out, that on every other occation, we didnt have massive inflation and a tightening into worsening economic conditions.
So I wanted to see more confirmation, for that purpose I´ve used the McClellan Summation Index, and the McClellan Oscillator.
The MO shows a nice bullish divergence, and the MSI shows an abysmall market breadth, often coinciding with bottoms in the market.
Do with this information, whatever your confirmation bias makes you want to do, but stay safe and manage risk!
This is not financial advice and I am more often wrong than right.
Pesonally, I will buy some Calls and reduce my short positions.
Yet I noticed that the last peak in Relative Strength in Gold was on march 16th 2020. This made me curious so I went back and looked at all RS Peaks from 2008 till now, and they all coincided with bottoms in the SP500 to the very day.
Some of those bottoms were absolutely massive buying opportunities: 2/3/09, 6/28/10, 2/1/16, 3/16/20, I also counted the peak on 12/17/18, despite a missing peak signal.
Two Peak Signals were wrong or early, for example we had a signal on 3/9/20 (7 days before the real signal and real bottom), and one signal on June 6th 2022, so 7 days before the signal we got right now, on 6/13/22.
I also want to point out, that on every other occation, we didnt have massive inflation and a tightening into worsening economic conditions.
So I wanted to see more confirmation, for that purpose I´ve used the McClellan Summation Index, and the McClellan Oscillator.
The MO shows a nice bullish divergence, and the MSI shows an abysmall market breadth, often coinciding with bottoms in the market.
Do with this information, whatever your confirmation bias makes you want to do, but stay safe and manage risk!
This is not financial advice and I am more often wrong than right.
Pesonally, I will buy some Calls and reduce my short positions.
Nota
So far, this has worked out pretty good. I am reducing my long positions, but not adding to shorts yet.Nota
Getting out of all Longs, adding some shorts, once I see a 1% + red candle with above average (30day) Volume.
Aviso legal
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