Trading Floor
Now Reading
The Squeeze Is On
0

The Squeeze Is On

The Squeeze Is On

by The MoleSeptember 28, 2020

Last Friday I warned my subs to not yield to the bearish exuberance peddled across the financial MSM and to instead consider exploratory positions in select tech related symbols. Like the rest of you I don’t have a crystal ball. But what I do have is access to over half a century of statistical data which strongly suggested that week #40 had good odds for a short squeeze. At least judging by the overnight session a first attempt to bang the open into a gap appears to be in the works.

Unless we see an immediate pullback in the next hour the SPX should open around the 3340 mark (fair value of the ES currently being around -11). That’s over 40 handles off the Friday close and is guaranteed to rattle a few cages.

Monday is stats day, so let’s dive right in starting with the weekly Sharpe ratio. Which stands at 0.20 for week #40, comfortably above the median for the year.

We are far from being out of the woods with two more negative weeks ahead of us until we hit the traditional Santa rally season. Of course this being 2020 in combination with the U.S. presidential elections anything can happen between now and Nov. 3rd.

Percent positive is at 62% and you know what I’m going to say about that. Exactly, I’d take those odds any day.

More statistical goodness below the fold for my intrepid subs:

evil_separator

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator