"What I saw this week in the AEX, and what it tells us about the direction for the period ahead."
It was a very difficult trading week for our options strategy. We were short at the beginning of the week based on our trading signal, but on Thursday the price suddenly jumped up. That can have all kinds of causes these days that have nothing to do with economics. A bit of favorable war news is enough.
The sharp rise could have prompted us to revise our short position for the week, but we didn't, because it was not system compliant. That was just as well, because on Friday, with a total turn in sentiment, it showed how things can be at the moment.
Some price recovery eventually came, but we saw a negative week, with no clear signs of direction for the longer term.
We have and maintain higher price targets for the AEX, though, but they may be longer-term. The wave structure does not currently rule out downward corrections either.
Have a nice day and see you at the review at the end of next week.
Kind regards,
On behalf of Van Megen Systematic Trading,
Ruud van Megen
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