The stock market’s rally could be ending or it could be continuing – either way, IMO the high probability trade for TOMORROW is to be long.
This correction is at it’s end, as the downward channel has been broken to the upside – yet the market is down overnight Sunday which gives you a Monday morning buying opportunity for 2-3 days of up.
Here is the count for the 5th wave of a 5th wave ending diagonal… I really doubt there is a better Elliott Wave analysis of the market at this point – but I’m all ears.
The 10x money will be on July 305 SPY calls when the market makes new highs. The “easy” money is on July 295 SPY calls that we exit NEAR the old highs, when we see either an extremely quickly rally which boosts option prices tremendously, or an identifiable 5 wave pattern like this:
If the market uptrend is over, then the market won’t necessarily make new highs – so the conservative trade is to assume that the uptrend is over, but in either case it should nearly retrace the old highs – so we go long for a short, quick gain.