Not much has changed in the market over the past six trading days as it has essentially been in a sideways/consolidation pattern. This tends to erode positions in the direction of the current trend, as stocks have a difficulty at holding significant gains, when the market isn’t continuing to press forward.

I sold my positions in Barnes and Noble (BKS) and UGI Corp (UGI) for those very reasons today, as it is becoming apparent that the market may (or not!) be ready to pullback over the course of the next few days or week. Once that begins, I will start re-entering to the long-side to get in on some cheaper prices, with the idea that the market, like it always seems to do of late, rally back to new highs.

Here are my charts on the S&P and Nasdaq.

Click Here to See the Chart on the Nasdaq.

 

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