Friday was all about Janet Yellen and Jackson Hole. All week long it was all that traders talked about so it was good to finally see this day come and go. While we knew it would be a wild one I am 100% sure most traders thought it would be more dovish than what the speech actually was. Well it wasn’t necessarily Janet that caused the selling. It was Fischer and Powell that really contributed to the hawkish talk that helped send what was looking like a strong rally early into a tailspin with the major market indexes ending mixed on higher volume marking another churning session. The distribution days and churning sessions are starting to really add up.
Combine the rolling over price action with my already rolling over momentum, time, and trend oscillators which are already in roll over mode from overbought levels and you have a recipe for a potential deeper sell off in the short term. If this is not enough of a reason to be cautious here, let’s not forget that we are heading into historically the worst month for stocks (September) with sentiment at bullish levels across all sentiment gauges that I track. It’s a full on short-term confirmation against the bulls. When I see everything lined up the way it is short-term I do not try and fight it. I go with it. That is why this weekend I have a whole new round of hedges going on against my heavily long portfolios.
I have to make this weekend’s update short as I am very busy this weekend. Have a great rest of your weekend and I wish you all the best in your trading during the upcoming week. I have a feeling it’s going to be more volatile than it has been lately. Trade smart, trade well, and cut those losses as fast as possible when you are wrong. Aloha.
TOP CURRENT HOLDINGS – PERCENT GAIN SINCE SIGNAL DATE – SIGNAL DATE
EBIO long – +247% – 5/26/16
CLR long – +162% – 2/11/16
GRAM long – +92% – 4/1/16
HBP long – +62% – 3/28/16
MIME long – +57% – 7/8/16
SIMO long – +47% – 3/11/16
EBIX long – +46% – 3/17/16
AOSL long – +43% – 6/14/16
ALRM long – +37% – 3/1/16
JDST long – +35% – 8/11/16
GENC long – +33% – 2/26/16
GGB long – +33% – 7/13/16
QLYS long – +32% – 5/12/16
APLP long – +30% – 3/31/16
