The end of the ‘V’ Bottom?

We head into 2015 with the S&P up 6 years in a row, and many expecting it to be 7 after this one is in  the books. I have been somewhat bullish throughout that time, finally giving up a short thesis in the fall of 2011, and fully embracing this bull market. My most recent call, was for the S&P to cross the 2k level in 2014, and it did. You can read my thoughts here :

Since that time, I have become more and more cautious. Not that I think the market is set to crash - I am not naive enough to think I can predict that - but  because the reasons I have been bullish changed. Here is one of my posts before Octobers sell-off :

The answer to the 'Who is buying U.S. Equities' question seemed pretty obvious to me in 2014, yet not so obvious to start 2015. At the same time, I don't think folks came into 2015 eager to pull the trigger, after what seemed like a rough 2014 for most fund managers.

I have been adding puts this week, and will continue to look for opportunities to play for downside. I think the end of the 'V" bottom rallies are over.

The S&P is currently at 2016, and I will be watching the 1960 area as  potential support. A close back above the 50 day moving average of 2041 may nullify my bear case.

SPX 1-7

I will also have more on why I think we are setting up for more downside in a later post. (Members can watch my 2015 video here .

Happy Trading!

- JB




JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

More Posts by JB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply