ES Sector Rotation and OPEX 7/16/2020
ES is in a chop shop. Why? It's because OPEX is tomorrow which will be a volatile mess. Also, sectors are rotating investors/traders. People are dropping growth stocks in tech for dividend stocks. Why pay an overpriced tech stock with no dividends when you can get an undervalued financial/transportation stock with dividends? It's a steadier, less volatile income.
Liquidity and breadth are still rising. Meaning, pullbacks will be temporary. Bears will be very upset that they won't get their crash that they wanted.
Remember, it's much harder to short than long. Most people don't know how to find a resistance. You have to understand the VIX and the VVIX to understand when pullbacks are imminent.
I won't be surprised if the ES pulls back then rips to 3250-3330. It's really not supposed to be this high due to the economy now, but that won't stop me from profiting.
Liquidity and breadth are still rising. Meaning, pullbacks will be temporary. Bears will be very upset that they won't get their crash that they wanted.
Remember, it's much harder to short than long. Most people don't know how to find a resistance. You have to understand the VIX and the VVIX to understand when pullbacks are imminent.
I won't be surprised if the ES pulls back then rips to 3250-3330. It's really not supposed to be this high due to the economy now, but that won't stop me from profiting.