Over the past two weeks, the $SPY has rallied 14%.
If we rally another 14% in the next two weeks, the $SPY will clear 52 week highs.
From that framework, I step in this week and put on my mean reversion hat, as the risk/reward for initiating new swing longs is not the best right here.
I could be wrong. We've seen many times in which liquidity has trumped technicals, fundamentals, and common sense. So if the market dictates to me to take long trades, I will not be the one to disagree.
In this Episode of IWO Brunch, we discuss:
- a confluence of resistance levels coming up on $USO, $FXE, $FXA, $DBA, and other "risk-on" type plays
- other second-derivative readings such as the McClellan Oscillator that show a strong breadth thrust, but registers overbought readings in the short term
- how the price action resembles the 2007 top
- potential Earnings Trades for $AAPL and $ISRG
- your individual requests
You can watch the show below: