How I Defeated Market Crash Theorists
Kay Kim | Dec 10, 2016 01:56AM ET
My trade has come to an end today as I completely closed out my remaining Calls today @ 226.47, my entry was 209.68 on November 1st (see my tweet screen shot below).
I think this trade has been one of the most satisfying / feel-good trade for me this year (not because of the gain, because I did have much higher percentage gain on my BSX trade ).
Because, at first, I felt like I was going against the whole world when I bought that dip on November 1st and felt like everyone was against me as it seemed like the whole country was looking for the crash--see this article that was published on Forbes on the day I engaged on SPY (NYSE:SPY) (11/1).
Election Night
Well, just a few trading days later after my engagement, market gapped up significantly (11/7) and it closed the day very strong, and this time I knew the move that I was anticipating has started.
Next day, the move continued on as the market soared again.
However, on the election night (11/8), futures tanked as low as -5% when the Trump's win was obvious (this was when twitters were going wild calling for the end of civilizations--sounds like a typical bear always overreacting), first I thought, it could be a problem for my longs (not just on SPY, but I was holding many long positions on other stocks).
I calmly re-evaluated that if SPY opens at 205ish next day, that might still be ok.
Well, futures rebounded hard into the late night while Icahn was buying that dip furiously.
I went to bed that late night when futures recovered 50% of its loss thinking, "it's good, this will do."
Next day, market gapped down slightly and it felt as though nothing had happened on that futures.
Since then market kept on going higher with micro-term pulbacks along the way, when this was happening, I felt as though I was the only one caught this rocket-ship while everyone left behind. It was great feeling, not that I didn't want anyone else to make money, but I knew that my analysis was solid and proven right.
Many "experts" and so-called prominent media sources called for (since early this year really) "market crash worse than 2008 was coming!" or "Sell everything!"
But I believed in my analysis which I came to a conclusion that we had high probability of seeing massive short squeeze while the whole country was going for the "Big Short" on this one.
Get The News You Want
And that's probably why market continues to thrive even today, while the sentiment is at its record/extreme 'overbought' condition. Again, market always fools the majority.
"Experts"
Traders who knows what they are doing, they don't need additional resources from so-called "experts."
I believe many great traders are not on Twitter or on YouTube (And these people knew this move and they profited from it immensely), because the more people know about their strategy/plan, the less likely it is going to work out.
Yet, if you do a YouTube search "2016 Market Crash", you will find so many videos from so-called "experts," and if you dig little more, it's no surprising that these "experts" been calling it every year since 2011. I, myself also been thinking about retiring from online presence, and trade in secrecy, maybe when I get married and have family..
Interestingly enough, when I published video, "5 Reasons Stock Market NOT To Crash ," many were opposing my analysis, and their argument was exactly same as what these "gurus" were saying (almost word by word, and it sounded like they were brainwashed to believe it so blindly).
The "gurus" were the Gold Pumpers who think stock market is going to "zero" therefore buy their gold.
What I am saying is, these people did NOT do their own research but blindly believed what these "gurus" were saying.
Again, if you dig little more (on these stock-to-zero-gold-to-infinity "gurus"), you will find that they've been saying the same thing since 2011.
Most people don't do enough research, they just believe anyone as long as they "seem" legit with high views or high followings.
I tell you right now, just because they are prominent or has high followings does not make them legit or knows what's going on, especially in the world of trading.
I am actually sick of these people always misleading and imputing fear into the masses and common traders/investors like ourselves.
How I Traded SPY
Anyhow, as of today, I don't know when I will get back into SPY, but I definitely wouldn't short here. I am very bullish in the overall market for 2017, and even possibly next 5-years .
Below chart is how I traded SPY since November 1st @ 209.68, if you like to see my journal-post day-to-day thoughts and charts, click here to my blog post.
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