The Stocks are Down

The Russell has nearly completed its move through its lower volume pocket.

This is the move I was anticipating back on the 13th when we purchased a huge position in TZA calls. My lower price target is 1000. I want to ride the calls until that price prints.

Would I short stocks here? No. The McClellan closed at -99 today. A bounce is coming, so wait for strength to bet against any stocks.

I’m not of the opinion that we get as strong of a bounce as we saw last time we went through this process. In fact, I believe the Russell could stay within this pocket for the next month. However, rather than waste time trying to predict ticks in the market, I’ll stick to my game, which is picking stocks.

Despite the slow bleed in stocks, there were a lot of names trading positive today. Most important on my radar are the builders. I think they play an important role in how this move in stocks resolves itself. More on this tomorrow.

OA