9/20/2020 Indexes down a little this week. Covered TSLA short, and still holding AAPL short. Monthly bearish RSI divergence on SPY.

Hi everyone. I hope everything is going well. 

I find the current price action a bit concerning, but whenever I get this type of feeling, nothing terrible happens and it’s just a simple pullback. Although I am still net short, I plan to add longs aggressively once I think the pullback has ended (~10% lower).

Let’s look at QQQ since the largest holdings in this ETF are dragging down the market. 

QQQ weekly chart below – I think we move ~10% lower from here:QQQ weekly 9_20_2020

Monthly chart of SPY below. Notice the large monthly bearish RSI divergence building up. Unfortunately, there isn’t enough sample size to predict what will happen this time. 

Monthly divergence SPY 9_20_2020

Enjoy your Sunday, and see you next week like always.

 

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