REAL TALK ABOUT THE S&P 500
I've outlined my feelings about the S&P 500 in the chart that appears below. The bottom line is that a violent, chaotic pattern will resolve itself much as it has lived its life...through chaos. Chaos would be a break of the August lows. That would cause mass confusion. That would also put in a solid bottom for the markets to rally from.
I'm holding 33% cash to take advantage of such an event. I can't see myself putting on equity exposure this week unless the criteria outlined in the paragraph above and in more detail, in the chart below is met.
Upside from a break of 1100 on the S&P is roughly 20%. I can see that move happening in a span of roughly 2 months given the compression in prices and lopsided bearish sentiment.
Think outside of the sphere of panic and defeat that is gripping everyone on Wall Street currently. That's the only way you'll come ahead going into the end of the year. Buying into group think isn't a hallmark of successful speculation. Real talk.
click chart to enlarge
SPY
