Recent Entries

  • Another Wallop

      Chalk up another distribution day. That’s two consecutive days of heavy selling. Permission granted to go short. Position Update: Short XLF. First Target 22.90, a conservative grab just under 200-day MA. Second Target 22. Third Target 21. Not looking for a home run.

  • Bear Wallop

      The Dow, S&P 500 and Nasdaq all received a severe walloping from the Bear. Distribution under the 50-day averages confirms the bear bias we’ve held. Short ‘em if you’ve got the stomach. Best shorts will be under their 50-day MA’s, pattern of lower highs and clear institutional selling. Keep a tight leash.

Chart Watch

  • The Russell 2000 is all alone under its high mark as the Dow, Naz and S&P 500 hit fresh breakouts. Our attention is focused on this small cap index because 1. That’s where we often find the best growth stocks and 2. This is a former leader in the recent bull market, so could be […]

  • S&P 100 options traders are complacent, according to the VIX chart above. This Point & Figure interpretation of the indicator, with all the X’s and O’s, cancels out the noise of traditional charts by only marking significant moves. Clearly a breakdown to record lows makes a counter move up inevitable, which means selling is on […]