Volume has returned and the Trade War with China has made shorting stocks great again!

Sure get excited about the dip buying today, but under the surface this market rally is anything but impressive. Breadth is okay, but with the walloping the market took yesterday, if this was a bottom for the market, we should be seeing at least 3 or 4:1 breadth across the board. Instead, we are struggling to even get 2:1 for the advancing issues. 

Oil is still falling today, and it is keeping the Energy sector in the gutter as a result. Technology has led every market bounce over the past 10 years, and even today, tech is just in the middle of the pack and not what I’d call impressive

A lot of people are buying this dip with their hopes and dreams. I have not. I still have my long position in McDonalds (MCD) but I don’t plan to hold that one too much longer, just long enough enough to hold it through the dead cat bounce and collect my profits from it. 

Below are my short setups that I am following. Ideally, I would really like to re-short this market on strength tomorrow morning, and then resume its downtrewnd at some point later in the day. The list of stocks below will help you get started, and I’d also say watch the bigger names like Amazon (AMZN) that has yet to break key support, but once it does, it should merit inclusion on the list below. 

You also have Commerica (CMA) that has one of the biggest head and shoulders patterns you’ll ever see!

Here’s the watch-list for the bearish short-setups:

bearish swing trading watch list 7 30