Despite the fact that you should be printing money again today for following my setups from last night ($WPRT is acting like it had 20 K Cups this morning), I would like to repeat the fact that you need to adjust to the market at this point. Now is not the time to be making aggressive bets on stocks that have already gone parabolic. You also need to emphasize stop losses. Again, if you followed my charts last night, you’d be up in $AMR, $JBLU, $GS, $HOG, $AOL and even $MEE if you chose to take the plunge. Of course, $WPRT is the big winner today. Also, I have been telling you to monitor the high bull flags I charted last week–namely $DPZ, which is going higher.
And yet, despite the success of my picks, I am not sitting here beating my chest and acting like a cocky degenerate. Instead, I am strongly advising you guys to tighten up right now on your longs. Cut your laggards. Raise your stop losses. Raise cash. SLOW DOWN. It bothers me that we have not touched the 20 day m.a. on the $SPX for many weeks now. I can live with staying well above the 50 day for quite some time, but the lack of relation to the 20 day gives me pause. Beyond that, I still want that retest of the 1150 area, before we see 1220. If we fail to close above 1187, we will have made a series of lower highs over the course of the past few days.
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