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Our SPX PCS strategy will be spectacular when panic selling ends

This selloff in SPX is a blessing as well as a sour moment in the markets. It is a blessing because once this ends and people realize that they were overreacting once again, we will see a nice recovery. It may be slow and long, or a “V” shaped. In both cases, once our SPX strategy signals tell us that it is safe to enter the trading again, we will be taking every trade in our trading schedule and making money fist over the hand.
It is a sour moment because we have to stay out and sit on the sidelines. But it is still a good thing compared to my previous trading.

My SPX trading before was to take a trade every week, every expiration, use all available buying power, and scale up the trading indefinitely. It was wrong!

I traded Iron Condors mostly. I thought it would be the best strategy out there. It was not. No strategy works all the time in any market. And Iron Condors can burn you badly in the strong bull market, as well as in crashes like today. It took me some time to finally admit, I was wrong and schedule my trades. Do the exact opposite of what I was doing.

So, I developed a set of signals to help me to determine the trend and be able to see whether a trend is safe enough to open a trade or stay out. So far, it worked well as besides a few trades I took and had to close for a small loss, I was able to stay out and wait for the mass panic selling to end.

But now, I can see that this strategy will deliver spectacular returns as we will be riding the recovery up. And I am looking forward to it.

But there is a caution to be taken from me and my followers. Even if we start seeing recovery and resume of a bull market, our signal may still be negative telling us to stay away. The signal may be turning positive but it still can be in negative territory. The reason for this may be that any potential recovery may just be a bounce or a relief rally. And if that will be the case, we have to stay out too.

But once these hurdles are cleared and the market will be going higher again, we will resume our SPX trading and profit spectacularly. Stay tuned for the recovery and be patient.

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