Bearish Trade setups – to watch, for now.
The bears, or what’s left of them, are really struggling to make sense of this market. I do too, at times, but that doesn’t mean I go shorting it. There will be a time for that, and when that time is, nobody knows.
For now, you have to trade the trend the market is trading in. Its not overly exciting, not volatile (as evident by the sub-10 VIX reading), but it is profitable and you have to always trade in the direction the market is willing to give you the profits in.
I’ve put together my list of short setups below. I keep a running list of short setups even in the most bullish of markets (and vice-versa). Not because I plan to trade from them at this moment, but to be prepared and if I find myself in a changing market environment sometime this week, I want to have the trade setups at my disposal that I can act immediately on, if need be.
So keep this list and the list that I post every week handy. The time will eventually come, and it will likely catch you off guard, but when it does, you will have something to work with, and that is what you want.
Here’s the bearish trade setups: