Finally seeing some rational thinking lead to profit taking today.
This is the most selling that I’ve seen in about nine trading sessions when the S&P 500 gave up about 188 points to the downside. So far today, it doesn’t look like it will be as bad, and heck, we might even seen the bulls try to buy the dip here in to the close. I don’t expect that, but you never know.
Europe sold off big today, and we are trying to follow suit. There was also a key break in SPX to the downside today as well. It was a channel that the market had been popping all around since June 16th.
I’ve only added one additional short position to the portfolio, because 1) Don’t count the dip buyers out just yet 2) Better to test the water with one foot, rather than two, lest you sink.
Below I’ve combined this post to include long and short setups. Careful in both direction because the market is at a crossroad here – will the dip buyers and FOMO traders again take the slightest pullback and buy it up again in the face of the worst social and economic news in decades?
Here’s my watch-list of long setups I am following:
Here’s my watch-list of short setups I am following: