It is Super Bowl weekend so I am going to make this weekend update short and sweet. Our operational models all remain under across the board SELL signals in every major market index. This has been the case all year long in 2016 and will continue to be the case until there is a powerful Follow-Through Day on huge volume with leading stocks breaking out of sound consolidation patterns. Don’t hold your breath.

At best it appears that stocks could possibly stay range bound for a while longer as long as we hold the 1/20 LOD. However, based on how big-cap beta stock traded on Thursday and Friday it appears that is a pipe-dream at best. FANGs got rocked, leading stocks building consolidation patterns got rocked (LXFT CMN ELLI ABMD SBUX), and recent breakouts bucking the trend of the overall market have failed miserably on huge volume (MAA CUBE STZ FB GOOGL). Let us also not forget about LNKD and DATA. This price action is not bullish.

Along with this terrible action, there are only three stocks remaining in my Perfect Speculator scans (FSLR BMA JBSS). As of this exact moment, none of the current consolidation patterns are forming what I would consider a “constructive” base patterns that will lead to powerful breakouts once these stocks clear their recent highs. In this tape, it is going to take a miracle for these potential monster stocks to move right now.

We remain heavily invested in cash on an EOD trend following basis and continue to operate on an extremely short-term basis only. Our continued focus will remain on intraday patterns of stocks that are moving pre markets on huge volume with low overall floats that preferrably trade under $10 a share. This remains the only area we see producing consistent alpha on the short and intermediate term. When and if more fear enters the market–VIX clearly is indicating there is no fear currently–then we will consider swinging the market on an oversold panic bounce.

Enjoy your Super Bowl Sunday and remember to play it safe in this stock market on an intermediate term basis. The downside risk, with the current technical patterns in the overall market, is significantly greater than any potential upside reward right now. Cash is king and will probably be for a while longer. Only the swift and nimble should be trading this market. Especially, if you prefer to go long leading stocks in uptrending markets. We definitely do not have that here. Aloha from a very windy Maui.

TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – SIGNAL DATE

UVXY long – +72% – 12/2/15
NFLX short – +54% – 1/7/16
ANFI long – +28% – 11/19/15
AGRO long – +26% – 10/23/15