First Trade Target Reached. Short Position Started at 273.25 SPY.

The target short range came into play this morning on the S&P 500.

Trade executed to sell short at the target price of 273.25 (SPY).

See chart below for updated analysis regarding current trade:

Watch blue horizontal bands (key price levels in chart above) as potential inflection point targets.

Could see a move back up toward today's highs during Wednesday (4/8/20) trading.
In any case, it was a great start to a short position. Trading plan still on schedule.

Current position: 1/2 Position SPY $273.25 SHORT
Current Plan: Hold.
Future Plan: Consider full position SHORT SELL at 285-295 SPY if market trades higher.

Short-term rebound is still in play, but could fall apart at any time.

Short-term market view: Bullish
Overall market view: Bearish


You can follow this trading idea in its entirety at:
https://www.tradingview.com/chart/ES1!/6dg3ZUN4-Trading-in-Major-Market-Downturn-and-Weakness/

Short-Term Bullish Sentiment Remains

Continued expectation of a move toward:
2,700 (/ES - E-mini S&P 500 Futures)
or
270 (SPY - S&P 500 Spdr ETF)

I currently have an order to sell short SPY at 273.15 (1/2 position). Will make it a full position if the S&P trades higher.

See SPY chart below for trade entry targets (end of day 3/25/20) :

You can follow this trading idea in its entirety at:
https://www.tradingview.com/chart/ES1!/6dg3ZUN4-Trading-in-Major-Market-Downturn-and-Weakness/

Short-Term Bottom

The S&P 500 closed above a key price range today. I have not been able to accumulate a Long position yet, but I will consider buying dips in the short-term in anticipation of an upward move toward 2700 (/ES).

Price Levels to Watch: (/ES - E-mini S&P 500 Futures)
Resistance:  2650-2700
New Support: 2350-2400

Price Levels to Watch: (SPY - S&P 500 Spdr ETF)
Resistance:  264-269
New Support: 237-242

To confirm short-term bullish sentiment, we will need to see a close above 2400 (/ES) tomorrow, 3/25/20.

Short-Term market view: Bullish
Overall market view: Bearish

Preparing for the Week of March 22, 2020 - Potential Long and Short Buy/Sell Price Levels

While the overall market view is bearish and lower lows are expected, market is setting up for a potential reversal. Although the market is short-term over sold, this does not guarantee a bounce here at the current price of $2,174 (on E-Mini S&P 500 Futures).

Looking for a potential price move back up to $2,650 to 2,700 (on E-Mini S&P 500 Futures) - Will consider short entries there.

If we see continued selling to start the week, I will be watching the $2,000 (on E-Mini S&P 500 Futures). I anticipate it to be a great buying opportunity. That being said, we may not get that low before seeing a short-term bounce.



Summary (Levels to Watch on E-Mini S&P 500 Futures):
Potential Buys:
$2,000

Potential Sells (or sell short)
$2,650-$2,700

If I take any trades, they will likely be near the start or end of any trading day. I will post trades if I take them.


I am practicing "Social Distancing" by staying home and watching the markets.

General Market Overview - Looking at the S&P 500 Chart

Overall Outlook: Bearish

Looking for a temporary reversal to the upside soon. When the upward move does happen, will be looking to fade the move and sell short. WTT expects market to go on to make lower lows.

Price Points To Watch:

SPY (S&P 500 Spyder ETF)
Long Entry Price of interest:
$200

/ES (June 2020 - S&P 500 Futures Contract)
Long Entry Price of interest:
$2,000

Current Position: Flat (none)
Will post any trades if taken

Longer Term Look (a potential market bottom extreme)
If markets do suffer extended loses this year, watch for the $1,400 level on the S&P 500. this will represent an incredible buying opportunity if it presents itself.

-
WTT view as of 3/20/2020

Trading during the 2020 downturn

Many years have passed since my last post. As the Covid-19 pandemic forces the practice of "Social Distancing", I have prioritized some new free time to do market analysis and some trade recommendations... A global recession has begun and a depression threatens. The financial system and global economy must now battle the unprecedented closures of businesses and the resulting reduction to global purchasing power around the world.

Various topics may be presented, but the ensuing discussion will focus on the S&P 500 Index, the most traded index in the world.