I was, at first, disappointed that I had a short for Monday and no longs as I was thinking that the market was still healthy for a rally. Well after today I am thankful for that new short and glad I didn’t have any new longs now. However, I still think this current two-day selloff that has hit the Nassy for a 5.4% loss is normal within the recent uptrend that came in a very V-shaped manner with big gains. As long as the selling continues on below average volume and we keep seeing those positive last hour bullish reversals it is hard for me to get that bearish right now, after being a bear for over 1 1/2 years straight. It is nice to finally have more than 2 or 3 green or max-green BOP filled, heavily accumulated stocks with nice price action. At the same time that we have these showing up, we still have many past leaders that continue to lag and stay well underneath their 200 day moving averages. As long as they stay in a downtrend without any large volume reversals above the 50 day moving average, there is no reason to do anything with them. The big money, Jesse Livermore said, was always made in his sitting. Sitting on gains as they accumulate and sitting on his hands when the market was nutty like this. Cash is still king but I would love to turn some of those shorts into longs. Sadly, I am not too confident that we can get much more going than a few month’s rally. I hope I am wrong and hope these charts are just the start of what we are about to see. Keep your fingers crossed. If that doesn’t happen, we will continue to watch stocks like CKH and ORH that show up on our short scans that could be future shorts once the rally runs out of steam. Great luck everyone and remember to be careful out there still, if you are looking to hold positions.
new short positions: none
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