Finally seeing some rational thinking lead to profit taking today.

This is the most selling that I've seen in about nine trading sessions when the S&P 500 gave up about 188 points to the downside. So far today, it doesn't look like it will be as bad, and heck, we might even seen the bulls try to buy the dip here in to the close. I don't expect that, but you never know. 

Europe sold off big today, and we are trying to follow suit. There was also a key break in SPX to the downside today as well. It was a channel that the market had been popping all around since June 16th. 

I've only added one additional short position to the portfolio, because 1) Don't count the dip buyers out just yet 2) Better to test the water with one foot, rather than two, lest you sink. 

Below I've combined this post to include long and short setups. Careful in both direction because the market is at a crossroad here - will the dip buyers and FOMO traders again take the slightest pullback and buy it up again in the face of the worst social and economic news in decades?

Here's my watch-list of long setups I am following:

Here's my watch-list of short setups I am following:

Still euphoric, still irrational, but the Robinhood Bros are keeping this market poppin'.  

I'm a day late on this watch-list, I get it, but hey, things happen at times. Nonetheless, here's the watch-lists I've put together of the stocks to watch both to the long side and short side. As you can see, the short setups are few and far between. As for the long setups, yeah, there is around 30 or so stocks, but in the past I have kept around 80 or so on there. The problem is even though the market has been in a strong bull market since the March lows, most stocks are not offering quality risk/reward setups. 

The Big question: "Will the stock market crash again" has everyone wondering if the massive 188 point crash on the SPX will mean more market selling in the future or will the dip buyers step in and allow the stock market to continue recovering. 

Another big question is whether the Stock Market Crash 2020 will resemble the Stock Market Crash 1929 and take out the March 23, 2020 lows, and establish even far greater lows. You have all the makings for a huge sell-off that include: Massive unemployment, a major contraction in US GDP as well as globally, the worst pandemic since the Spanish Flu and major social unrest. For me, it isn't a question of "is the stock market going to crash again" but "when will the stock market crash again.