Yesterday’s sell off provides bears with a new opportunity

At the midpoint yesterday it looked as if the market was going to enjoy another one of its intraday “V” shaped bounces that we have become accustomed to. But just as it was about to rally back to green, the market went on a massive sell-off that never looked back. 

Sure they’ll blame it on the violent protests at the G20 Summit, but I’m pretty sure the market couldn’t care less about that. Think back on when the market was selling off on North Korea launching a test missile. It sold off hard back then, but how many more tests has North Korea been engaged in, and how many times has the market shown any kind of sign that it cared? 

You see the market sells off, because it wants to. It’ll use new current events like the protests to give reason to investors. But in reality, the market is at insanely overbought levels, and now we have the makings of a legitimate sell-off. 

I mean when was the last time w actually have a 10% pullback? It was January/February of last year. We are so overdue for one, and to expect one here wouldn’t be at all far fetched. 

Now the opportunity is being gift-wrapped for the bears to seize upon. The charts on the S&P 500 broke down with a break below the 50-day moving average and a push below the box formation I’ve been speaking about for the past month. 

If the sell off is to happen, it needs to happen here. Otherwise, the bulls will be chillin’ back at new all time highs again in a few days. 

There is reason to be skeptical here too, because the bulls have had plenty of success with rallying off of the 50-day MA as well as when it dips slightly below, so the task tomorrow for the bears will be to get some meaningful follow through that leaves no doubt to the idea that the bears are for real this time. 

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance: 

• 2 Long Positions, 2 Short Positions

Recent Stock Trade Notables:

• Intel (INTC) Short at $35.21, covered at $34.46 for a 2.1% profit. 
• Nvdia (NVDA): Long at $155.57, closed at $157.53 for a 1.3% profit. 
• IBB: Long at $298.24, closed at $303.74 for a 1.8% profit. 
• SPXU: Long at $15.68, closed at $15.25 for a 2.7% loss. 
• Whirlpool (WHR): Long at $190.46, closed at $195.19 for a 2.5% profit. 
• Ferrari (RACE): Long at $84.60, closed at $89.93 for a 6.3% profit. 
• Amazon (AMZN): Long at $964.70, closed at $1001.23 for a 3.8% profit. 
• American Airlines (AAL): Long at $49.18, closed at $50.62 for a 2.9% profit
• Alibaba Group (BABA): Long at $124.95, closed at $137.51 for a 10.1% profit. 
• Starbucks (SBUX): Long at $61.78, closed at $63.68 for a 3.1% profit.
• Western Digital (WDC): Long at $91.24, closed at $89.29 for a 2.1% loss. 
• Broadcom (AVGO): Long at $236.65, closed at $241.15 for a 2% profit.
• SPXU: Long at 16.60, closed at $16.98 for a 2.3% profit.
• JP Morgan Chase (JPM): Long at $87.84, closed at $85.98 for a 2.1% loss.
• Micron Technology (MU): Long at $29.00, closed at $28.04 for a 3.3% loss.
• Alibaba Group (BABA): Long at $116.25, closed at $124.09 for a 6.7% profit. 
• Southwest Airlines (LUV): Long at $58.35, closed at 57.23 for a 1.9% loss.  
• Broadcom (AVGO): Long at $223.63, closed at $228.65 for a 2.2% profit. 
• Workday (WDAY): Long at 86.00, closed at 90.32 for a 5% profit. 
• Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
• Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit. 
• Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit. 
• Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss. 
• Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
• Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
• UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit. 

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