Hi Folks,
I believe in the next few weeks we are about to take the next BIG LEG down in the market. The way I see it unfolding in terms of SPY is that we trade down to around the $200 level, then rally back up to the $208 - $209 range and then the bigger selloff begins. I have also lowered my forecast for the potential market bottom from $88 to $84 based on this last leg of the market. Again that number will take time to get there. I am not suggesting that we go right to that number. This market is unfolding as expected and the eventual bottom takes a few years.
Thanks and Good Trading,
Tim
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How long do you expect this move will take to play out? A 60% drop is massive. What are the fundamental factors that will come into play and cause this market drop?
ReplyDeleteMichael,
ReplyDeleteI apologize for my tardiness in my reply. I have neglected this blog for almost as long as I have had it, but more specifically, lately. I have been trading for over 25 years and 10 of those as an Options Market Maker on the floor of the PHLX. In the past few years, I have shifted to trading weekly options, mostly in SPY, because volume is rarely a problem. If you read my prior post I'm sure you have your answer to your question but if you have any other question or ideas you want to bounce, let me know. I'm assuming you are a trader, and always welcome input, critique, insight,or whatever. You can email directly at tw2616@gmail.com and will definitely get a response from me.
Thanks,
Tim