While I’ve hustled to scale out of longs over the last few weeks, I find myself starting off the month in the hole.
I gave back last weeks gains and then some. Total about 6%, which means I have work to do. I haven’t had a week like this since April.
Anyway, about the market…
The 1622 didn’t hold. As it pertains to corrections and the sentiment cycle we are using, recent highs and lows matter. Numbers, not so much. As I mentioned, these are always easier to call with the luxury of hindsight. However, since my money doesn’t work that way I try to use my best judgment in the moment to avoid portfolio calamity.
Here are the things I am concerned most about at the moment.
The VIX saw its highest close since February
Market breadth has been awful
The $NYMO closed at -97
Indices approaching Thursday’s low
While increased volatility like this disrupts the option market, we’re now at the tipping point which suggests a weaker market could go significantly lower. If rally attempts continue to fail, I will bet against a small basket of stocks for another 60-70 SPX points.
However, rather than start here, in the hole, I will simply sit back and wait for strength. Ready for anything at this point.
OA
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hard open coming tomorrow.
Indeud
is it 2 pm again, cause even a broken clock is right twace a day!
sorry, that was directed at fly jr
Thanks OA. At least US market hasn’t moved like Nikkei, still orderly correction,,,, for now,,, will see. I’m seeing SP1500ish.
I warned you perma bulls about this
is it 2 pm again, cause even a broken clock is right twace a day!
hey oa,so when do we start shorting the banks.i’m getting itchy.
Which ones?
Hi OA,
Thanks for your market thoughts? On strength, is FSLR still one you’d buy? It fell through the stop you mentioned in the video. If so, what would be your new buy plan and stop?
Thanks!
Nope. Done with it for now.
Will revisit in a few weeks.
Picked up BIDU calls at the open.
Jun 100s for $1.14