Hi everyone, welcome back.
Stocks moved a bit lower this week mostly due to technology stocks / QQQ selling off. Although futures indicate a fairly large gap up, I think we will move lower again this week simply because the momentum has shifted. As a result, I am still short TSLA and AAPL.
Below is a weekly chart of SPY. Notice how the RSI went down while we made new highs. This suggests a momentum overshoot and we are bound for lower prices ahead. I think we retest the high 290s (~10% lower) within the next 4-6 weeks.
Enjoy your week! I’ll keep you posted if I decide to scale in or out of any trades. I am considering adding more to my MRO position, but will probably wait until we get a retest of the lows.