Nothing More Than A Pullback On The S&P 500!

The S&P 500 has moved over 100% since the low of March 2020 when price started recovering from the declines instigated by CV19.  During this time, there have been numerous pullbacks to between the 20sma and the 50sma on the daily timeframe. 

I have highlighted them in the image below. 

This current pullback is now also trading between the 20sma and the 50sma. Is this finally a top, and can the wishful-thinking top-callers finally breathe a sigh of relief that they may this time have finally called it right? 

There is always a chance as we never know when the market has topped out until price dictates that. Until then, it is just guesswork 

However, the chances of a full-on trend reversal and bear market, as we saw in 2000 and 2008, are always less likely compared to price finding support, bouncing and breaking out to the upside. 

Since May/June of last year, I have held long positions on stocks when the market had recovered enough from CV19 to suggest the bulls were in control. 

I will continue to hold my long positions, each with risk management and exit management in play, as long as the market display bullishness. I like to keep it simple and follow the mantra; the trend is your friend until the bend at the end. 

The priority for far too many is the ego of being right and calling a top but regularly failing.

My priority is to make profit, more specifically, compounded long term growth. The simplest way to do that is to align yourself with the market rather than fight it. 

The beauty of good investing is in its simplicity. 

Zaheer Anwari Co-founder of Sublime Trading