A little rally to keep the Bear on its toes.
However, the dominance of recent, heavy selling prevails.
Bear bias remains as long as price action on the major indexes holds below 50-day moving averages.
Short ‘em if you can stomach it.
Respect stops. The market owes you nothing.
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.
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.
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 […]
