By no means are things improving for this market. 

There is plenty to be concerned with but no one headline that has yet to really drive fear into the heart of investors. You have Ebola worries, ISIS terrors, European banking concerns, rising dollar, POMO drying up, and politicians in DC that concern themselves more with the golf course and political fund raising then actually doing meaningful work of any kind. 

As a result the market continues its selling that has been in place since the beginning of September and continues now into October. 

The Daily SharePlanner Reversal Indicator shows signs that the recent bearishness could be ready for a temporary pop. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator Daily 10-8-14

On the weekly, we haven’t quite seen the bottom put into place, and the weekly is, in general, the chart that we should be more concerned with. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 10-8-14

Shorting the market, particularly over the last five years has been a very difficult proposition. You have to protect yourself of being squeezed out of your positions, and trying to test the waters with both feet, can sink your portfolio right to the bottom. That is why, when the market starts to run a muck, you scale out of your positions rather than selling them all at once. 

Stay patient and stay nimble. 

    You are unauthorized to view this page.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind