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SPX trend strength since March20


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#1 bigbud

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Posted 30 May 2021 - 03:07 AM

Slope of trend in this rally is only comparable with those from 2009 and 1982.

Think we need a pullback and a less steep trend. Am not bearish for the rest of the year - just think we have gone too far on a short term.

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This is how it played out in 1982 and 2009

2021_002.jpg



#2 Douglas

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Posted 31 May 2021 - 07:44 AM

bigbud, the horizontal red line across the peaks in the plot of the slope of the 21 day linear regression line of SPY shown below definitely points to steeper rallies since the March 2020 panic sell off.  I assume that this is being caused by the FOMO effect after the super fast recovery from this panic made all the doubters look dumb.  This has driven the buy the dip crowd to pounce really hard on any sell off since this low.  Just buy every dip except the last one.  Guessing which dip will be  the last one is the trick.  

 

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Regards,

Douglas