The analogy of the sideways coil on QQQ really resonated. Does that pattern usually suggest a higher probability for one resolution over the other, especialy given current conditions?
Hi Roxy. Thank you for your comment. Markets remain range-bound for now but the tighter the coil gets, the bigger the implied move once it breaks down or breaks out. Regarding resolution, there’s arguments to be made on both sides right now - but given where we are in terms of the bull cycle, it’d be a brave move to bet on a sustained drawdown here. If we’re positioning for the long side, which quants/data suggest we should - then dips remain buyable in the medium term remains my take.
The analogy of the sideways coil on QQQ really resonated. Does that pattern usually suggest a higher probability for one resolution over the other, especialy given current conditions?
Hi Roxy. Thank you for your comment. Markets remain range-bound for now but the tighter the coil gets, the bigger the implied move once it breaks down or breaks out. Regarding resolution, there’s arguments to be made on both sides right now - but given where we are in terms of the bull cycle, it’d be a brave move to bet on a sustained drawdown here. If we’re positioning for the long side, which quants/data suggest we should - then dips remain buyable in the medium term remains my take.