• bearish watchlist 6-10-15

The snap back rallies in this market are truly amazing. Let a rumor of a side meeting between the three main characters in this Greece madness start spreading and suddenly the algo buy machines turn on the turbo boosters, and start buying stocks as fast as the market will allow for. Right now SPX is looking at a 27 point rally on the day with hardly a breather at all. And this is in spite of reports that suggest no meeting is even actually happening. 

So there is a very good chance this is nothing more than a dead cat bounce for the market, but those dead cat  bounces can last 2 to 3 days before they ever get the hint that the buying is starting to dry up. So yes, this market could very well rally into the 2120’s it not take a shot at new all-time highs before it starts to pullback again. 

With that being said, you have to be very, very careful about adding new short positions at this juncture, and by no means do you front run the rally with new positions. I am currently at 90% cash and plan to stay that way until the market can decide whether a rally beyond the previous highs are in order, or whether it plans to resume the downtrend yet again. 

Take the short setups below and be ready to act on them when this rally runs out of steam, but not until then. 

Here’s the bearish setups:

bearish watchlist 6-10-15

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