Our Time Is Coming

I’m not seeing that much in terms of longs this evening as stocks have basically traded in a straight line since last week. High probability setups remain scarce, and I, for one, would love to see a few days of consolidation.

I was quite impressed with the action today as the $SPX man handled the 50 day moving average. Now a pullback back down to that level will interest the dip buyers.

Here’s a look at the $SPX, noticed how it closed with a kiss to the underside of the channel, just as I stated in the previous post.

The $RUT still has the 50 day to deal with:

And, the $DJI only has about another 100 points of upside left in the tank. Hard to think we can trade above 11550 without some sort of pullback, but I also thought the same thing about the 50 day.

My book is long, but I not looking to add anything here. If anything, especially on another gap higher, I will look to book profits and or jump back in my favorite inverse ETF.

The hardest part of trading, at least for me, is waiting for high probability setups to emerge– I’m always looking for the next trade. But, staying light over the past few weeks have saved me much heartache as well as hard earned capital.

Our time is coming though, as the 4th quarter is just getting started. A few days of consolidation, and we will go from the problem of finding setups to the problem of narrowing our watchlist down.

Less is more here, and cash is king (no homo).

 

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