With yet another low volume rally the market is getting ever closer to the indexes 50 day moving averages which might be the first line in the sand for this market. If the market fails around this level on higher volume, we will surely be putting money back to work on the short side. However, I must admit that three days ago a new short setup in a “near-perfect” short pattern. They seriously can only get a LITTLE more better to be a “perfect” short. Yet, ever tragically, in this twisted world of a volatile stock market that doesn’t make much sense the past two month (as we are basically in a consolidation) this stock has failed and has triggered a cut loss. This kind of action makes me pause and reconsider taking shorts. At the same time it is too early to go long. So what to do? Pray that we get a further low volume rally and that it either fails at the key moving averages so that the new shorts we have taken can start to make us money or let’s just put an end to this downtrend so we can start making bases and get long some nice stocks. Right now, not much seems to be working and the fact that stocks that at first were great shorts have now pulled back to either slight gains (for the shorts) or break even levels, recently, is a painful situation to go through. So we must consider that near-perfect short patterns are not working and with zero new longs for a while we might be in a period of cash hording. However, every time I think that I start getting more shorts or more longs. Whatever the final case may be, I am fully ready for a turn up or a turn down. I am loaded with cash and ready to put it to work as soon as a signal is given. Right now, there sure are not a lot of signals out there. I hope everyone had a wonderful Thanksgiving!
new short positions: none
none
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