I saw the futures on Monday, thought “hey, the week is off to a good start”.
Woke up on Tuesday, preparing for the week, looked at pre-market futs and saw SPX down -22 points.
I checked Trump’s Twitter feed, nothing.
Checked Bloomberg, and there I read about Italy and their burgeoning “2014 Greece-like moment” hitting the financial markets.
The worst of the bunch is obviously the financials, because the 10-year is getting slaughtered today, and that is never good for the banks.
I thought perhaps as the market was trying to rally off of those overnight lows, we might see some kind of bounce as technology was holding up relatively well, and the breadth wasn’t overly negative.
Well, fast forward five hours later, and the bulls are sitting near its lows of the day.
So, the biggest thing that I am seeing right now, is the fact that the bulls have allowed for a downside break of the +2 weeks of consolidation pattern it had been previously stuck in. I actually expected we would eventually break to the upside, so the fact that we did the exact opposite concerns me, and it should concern you to. Right now, I am out of my longs and net short on this market by a small amount. Playing it safe until I have some confirmation.
For now, keep track of the stocks on the bullish list below. I’m not playing any of them right now, but if this market does reverse back higher, I’ll have no choice but to get long again.
Here’s the bullish trade setups:
