Following a record rally, the market has turned schizophrenic and is on track to give back those gains almost as quick.
My clue to exit longs was when the SPX broke daily support last week and continued to make lower highs on the 60 minute chart.
Its like 400 degrees outside and there is no way I am sitting here, day trading shorts while dressed in burlap + velcro sneakers (common bear attire).
There are pockets of stocks that are outperforming, but I am not interested in buying anything until I see some sort of base form on the SPX.
The good thing about trading breakouts (to new highs or out of bases) is that either they are there or they aren’t. If you know what I mean.
Which also helps me not hold onto losing stocks like an idiot.
If we trade above today’s SPX high of 1,315; a hammer / swing low will be in place. Otherwise I still expect the MACD to go to 0 before the next leg up.
(shake out on debt news, break out on QE3 news)
This correction should be quick enough for me not to bother with shorts and I am not interested in joining the bear circle jerk (TVIX) at these levels.
Instead I am going to chase skirts, eat ice cream (low fat) and work on my tan.
