Shorting Stocks

Look, I want us to keep pushing higher. I am positioned for the market to go higher.  But the bulls are stuck in this nasty sideways trading pattern that keeps seeing hard reversals in both directions. 

While I dipped my toes to the short side during the month of March, I didn’t nearly capitalize as much as I could have that month.  That is because of this T2108 chart, which measures the percentage of stocks trading above their 40-day moving average. 

Hard to short at this level, when the market is this overbought There are tons of short setups out there, but you really need to pick and choose your opportunities. At this point, it is more likely we get a bounce out of this market that sees prices rally for a few days, rather than

Once SPX crossed 2650, I decided to start closing out my long positions. Three out of four of which were profitable. I added Boeing (BA) this morning but I had to quickly bail on that one too (my only un-profitable positions). 

Ugly price action across the board today.  SPX is 38 points off the highs, as of this post, and continues to put in lower-lows and lower-highs on the intraday charts. 

The S&P 500 is having issues with the 50-day moving average this week, much like it did with the 20-day moving average a couple of weeks ago.  Three out of the last four days have seen price rejected at this key moving average. This is a problem if it persists throughout this week. But while

Stocks over the last couple of days have not looked all that healthy. As a result we are seeing intraday gains get wiped out in dramatic fashion and the while the market has bounced in a big way in the second half of the month, many of the stocks are not keeping up with it. 

The bulls are trying to bounce today, and they absolutely had to, if they were going to keep this market bounce going.  However, the 20-day moving average is still providing resistance, as of this post.  Should that MA clear, I think the bulls have a clear path back to the highs gain. The price action

No one really knows if this sell-off is, indeed, over with.  The bulls can make a convincing argument that the worst is behind us, with the convincing bounce, last Friday, off of the 200-day moving average. 

We’ve entered that phase in the market bounce, where everyone is wondering whether this is a “Dead-Cat Bounce” or not.  My experience with market bounces following a huge sell-off, is that they usually last 3-4 days, enough to where people feel comfortable with the notion that the worst is behind them, only then to have