Week of May 5

Have bears been punished enough?

Recap of last week

Last week bears got rocked again. The title of my post was “Stop thinking bearish thoughts”. Crystal clear which way I thought the market was headed and thats exactly what I did.

Last week we took 2 trades. We won 2 trades. One long from 5522, and one long from 5466.

For our first trade, we took 0.5 points MAE, and it ran for almost 60 points. No typo. For our second trade, we took 11 points MAE, and the trade went for almost 200. We locked in over 200+ points on ES last wee, no losing trades. Again.

I saw a great Winston Churchill quote last week “If you’re going through hell, keep going”. We went through hell in March/April, and we made it through. Times like that when the market is crashing with no liquidity really favours no one (except Perma-bears who are permanently broke). But what occurred last month was an extremely rare event, and we could go 5 or 10 years without seeing another crash like that again. All you had to do, as I repeatedly urged in my Substack (despite being trolled) was, do nothing. Now a measly 1 month later, the SPX has recovered every single penny of its losses since that ugly day for America. If you stayed put and didnt sell ANY longs like I suggested, you didnt lose 1 single cent. Just your ego was hurt maybe but we could all use less of that.

Anyways, on to next week. Is this squeeze done? Are we there yet? Is this even a squeeze? Or start of a rally to 6000.

Next move for markets