Surprise Weakness, makes my short watch-list relevant again

There’s no doubt that a lot of traders are shocked by today’s market action. We finished at all-time highs in the SPX on Friday only to give up basically all of those gains today. On the SPX chart it looks like a complete engulfing pattern, while on the SPY chart, it looks far worse. A bearish island reversal candle that is of the makings of a classic topping pattern. 

This is why I say it is so important to always keep a separate long and short watch-list and to always keep both of them updated at all times, because today all of a sudden those short setups are coming in  handy. 

A number of the stocks that are listed are in play right now

First you have Barrick Gold Corp (ABX) that is positing a significant breakdown only to rally hard back into overhead resistance. This stock is providing a handsome risk/reward shorting opportunity off of the breakdown-to-bounce setup. 

United Continental Holdings (UAL) which I tried going long on not to long ago without success, is actually bear flagging as an excellent shorting opportunity right now. 

Finally ALV, another stock that didn’t short well for me before has set up as a much better opportunity this go-around. With a double top that is in the process of right now breaking down. 

A lot of uncertainty in this market right now – don’t trust it, but trade what you see and not what you are thinking. As it stands right now, the market has a completely different look to it today.