SPDR S&P 500 ETF TRUST
Singkat

2 FAST 2 FURIOUS

83
29th August 2022

➤ Prices resolved in a catastrophic failure for the Bulls. The expected re-test higher ended abruptly. The huge sell-off comes after Fed voweled to fight inflation and crush it back to 2%. IMO, this can only mean they see inflation is "sticky" and has already seeped into the psyche of market participants. If not addressed, this will set in a period of stagflation.

➤ I moved to -40% exposure with shorts on DAX and UK100. This is a low exposure. The maximum exposure is +/- 200%, the level of highest conviction.

➤ Unfortunately, prices moved aggressively downward just like in June before I was able to be positioned appropriately. I will not be chasing this move as the risk/return will not be in my favour.

➤ For the Bulls, it could be argued we are still in a wave 4 corrective move in Elliott Wave terms. This will be negated if the sell-off continues.

➤ Conclusion: Bears have control, can they push their advantage?

Penafian

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