My sole position has been a levered short bet against the small caps in the Russell 2000 Index, which I noted this morning would be the market “tell” for today.
Currently, the small caps are leading the indices lower, on top of damaged marquee issues.
We looked at the daily timeframe this morning and surmised the 200-day moving average being probed so many times was an ominous sign.
Now, the hourly chart below, zoomed-out, shows a test of the major support trendline dating back to mid-April. Bulls are obviously looking to save the day again down here, though I am going to stick with my short until they give me a reason to push off of it.
We also continue to see plenty of sell-the-news reactions to great earnings, another late-stage bull market warning sign.
And yet, we have been here so many times before, with bears’ efforts proving to be futile. Hence, the power of the heavy cash position to avoid the chop, even as I take select shots on the short side.
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Watching VMW to the short side here.
finalmente !!!!!! wow