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18 of 22. That’s about how many up days the S&P has had in the last month or so. Good action for sure and the big question is when will it end? I thought it may be today, but it didn’t happen.
Why am I cautious? Because logically nothing goes straight up and every time a market gets to the point where every chart is so perfect it needs to framed, the market caves in. Just my experience. So right now I would rather be a little less long and a little short. The market could prove me wrong for a day or two, but I do think we will correct at some point soon. No I’m not trying to pick a top (I joked about that today on the chatroom today), but I am pulling in my horns a bit.
I added some shorts today with very tight stops with the exception of FAZ which was a little wider and I am will to take a small stop with the idea of reentering again if I have to. I thought we were starting to correct today, but it was a false alarm.
I am watching the financials closely as a “tell” here. As you can see below, the ETF stopped right at the 50 day simple moving average on the weekly chart. It will need volume and a catalyst to aggressively poke through to higher levels in my opinion.
Hope you had a great day and I will see you in the morning. Please check the P&L for any changes.
Joe