"Do Over"

Have you ever worked on something to have it go poof!! Gone!! That was the post here from investingwithfaith.com…. NO idea at all what I clicked on but I deleted everything I had just written. And that is 110% okay, I get a “Do Over”

The stock market just gave us the Do Over of the year for sure. Many if not most stocks have now made “V Shaped Recoveries” Remember now SPY is the ETF of the S+P 500 and is 1 /10th the price. About a year ago I kept telling investors it was going into a Cup w Handle formation, some took notice, others said we were crashing lower.

Well since then we have definitely made that formation, and what we just now did was complete the 2n’g leg of the 4 that typically accompany it. That can clearly be seen on the 5 year chart with the Weekly bars. As a day trader I trade Gaps for a living. Did you know that there are actually 16 different kinds? Yes there are, Up / Down, then open or partial, then the 4 main ones from chart patterns. And the one that we are seeing right here right now is what is known as a “Continuation Gap” Or some call them a “Measuring Gap”. They are called that because they occur ½ way through a trend. They have distinct characteristics that are noticeably different from the “revered” Gap and Go.

The S+P is giving both of those signals right now… Both means that it just finished the 2nd leg of 4, and a Continuation Gap. You don’t have to use that information, but we are taking it to task along with the strong Options flow that is increasing for upcoming dates. Today the market closed up incredibly strong, for anyone that was still behind the curve from last week today was a “Do Over” for sure. And if 3 out of 3 is any indication here, we won’t need any more Do Over’s, anytime soon.

Invest wisely, live charitably and be well

Brother Bill

Side Note: For the past couple of years I have been welding / creating a faith based sculpture garden. Well it’s at a point now where some people are coming over to make a more professional video of it. That will be starting very soon. ( Seriously doubt it will be a one and done, planning for “Do Overs 😁 ) I share this to say that it is never to late to learn something new, that includes investing, I’m 59, just started welding 2 years ago.