I.. am.. inevitable!
On Monday evening 10 Aug 2020 538pm, I emailed Clients my latest post titled 'I.. am.. inevitable!'.
Below is the full transcript of my write up:
Happy Birthday Singapore! Today is a SG holiday but I wish to give a quick update on the US market.
Some clients asked me for my opinion last week on the direction of the S&P500 Index (SPX). Among the various but same replies I gave, I thought the following whatsapp reply dated 7 Aug 2020 (see attached image) is most short & sweet:
'Client: Market still charging higher eh?.
Thomas Ng: Since 30 Jun, every pullback in SPX is held at BB (Bollinger bands) midpoint. Until that is broken down (at the very minimum for the bears to take over), the door remains open for that potential higher high (ie, a new all time high for S&P500). Higher high will give all Robinhood folks (the reason) to flock in one last time before the inevitable (correction).... finger snap....
Client: haha thanos ah'
In one short response, I gave the parameters (again) to watch keenly over the few weeks -
1) Sustained break down below BB midpt, we have the initial signs of Bears usurping the ball back into their court
2) If no breakdown, Bulls continue to hold the ball and SPX3470+/- is my potential bullish pattern implied target (See my 21 July writeup www.thom-ng.com/post/damn-the-world-is-truly-our-oyster).
Nevertheless, we are nearing what I think is the final stretches of the Covid low March rally (due to negative Seasonality effects), traders should be nimble (hello stop loss!) while longer term investors should start considering what to buy in that correction low. Live Long & Trade Well!
Thank you & regards Thomas Ng, CMT Principal Trading Representative 首席股票经纪 www.thom-ng.com