This is precisely what you want to see in a downward spiraling tape: a boring close. Nothing too crazy. Heck, even the Russell closed lower on the day. Breadth was abysmal and nothing really looks good — aside from SAAS.
Bulls need at a minimum 2 more up days — strong from open to close. We need some hollow candles on those charts. Volume isn’t necessary, just price stabilization. There are leadership stocks in software readying to shoot higher. All we need is a little Fezziwhig joy and Xmas spirit and off we go.
Recapping what I did today: I covered all of my shorts this morning and re-upped my position on TLT to maximum and bought some NUGT. My cash is 60%.
If I see stocks open strong tomorrow, I will very likely allocate heavily on the long side.If you enjoy the content at iBankCoin, please follow us on Twitter