The intraday bear flag I drew in my last post not only failed to resolve lower, but we saw a nice pop up and out of it. In light of that, I decided to close both my existing longs and shorts, moving back to 100% cash. I do not see much of an edge here, either way, and sometimes I find it is best to just wipe the slate clean from winners and losers (even though I was heavy cash to begin with) and start anew next week.
One final note: SMBL is closing out this week impressively, this giving it the Three White Soldiers pattern I outlined in this post. While very extended short-term (I would not buy it right here right now) after a multi-year consolidation I am looking for a sustained move higher in coming quarters, so long as the broad market does not sink into an established bear.
Have a great weekend. I’ll be back later with more analysis.
Still holding pat. The longs are working OK. The shorts, not so much.
thanks chess, im startin ta think if we had a nuke attack, the mkts would up on the news.
well done and same thoughts and went all cash yesterday. Clears the mind for the weekend. There was heavy distribution yesterday and this day does not impress me and I’m looking for follow through to allocate a chunk of money.