I feel like I am doing this bearish watch-list just to simply stay disciplined in my approach to trading the stock market. 

What’s funny though, is that when I start to feel this away about maintaining a short watch-list of trade setups, that is usually the time the market pukes all over itself. Not immediately but in the not-to-distant future. I even tried a trade in Western Digital (WDC) this morning, and was quick to cover it when it decided to rally into the afternoon instead of continue with another leg lower. I still like the chart overall, but in what seems (but not really) like an endless bull market, I’m not going to hold this overnight without some gains to play with. 

I was a bit reluctant to get overly long on this market until price managed to break through long-term resistance, and it did so with flying colors at the close of trading last Friday. But has done little since breaking through. Here’s the resistance that left me tentative to get overly aggressive on the long-side until it was cleared:

No doubt we broke it now, and while we are just above it still, I’ll stay bullish as long as it holds, if it breaks, then I’ll scale back my exposure some. 

Take a look at the bearish watch-list below: