As I write this on Wednesday after the close, I don’t know yet what the night session will look like, but I am betting on a gap higher for Thursday’s open. As expected on Wednesday we got selling pressure as discussed on the weekend and prior to Wednesday. In my view that selling has now dissipated and the market looks ready to resume its ascent. It took just two trading days, albeit pretty bearish days, for market sentiment to once again become in my view overly negative!
This is worth repeating … don’t worry about the macro or the news because eventually it will be important, but until that time arrives, you are best to pretty much ignore it. All a fixation on macro will do is make one too predisposed to the short side. Yes Macro looks horrible. But macro doesn’t matter until it does! And no one knows if that’s days, weeks, or months or more away. I entered long on several call options and bull spreads at around 2:00 pm New York time on Wednesday. These include AAPL, AMD, UBER and the SPX. Expect a firmer close to the week.