There are no new short positions tonight as the market had a natural reaction to the big Friday selloff. If you have a downtrend bias in your blood then you have a few factors in your favor after today’s session. First off, volume on the rally was much lower than on Friday and the gains compared to losses were very insignificant. Second, two leading stocks are looking real weak with AAPL starting to have a lot of distribution and red BOP showing up in its daily chart and CMG cracking today on a strong surge in volume. Third, and finally, the few nice charts that did show up today were in the medical and small bank fields which historically do well when the market is under pressure. So overall today was not that bullish unless you look at the fact that all of our current longs that we are holding did well and we did have one new long. Still it is not like the longs we are holding are of the quality that led us higher in 2009. This market is indeed very weak and the short bias is probably going to be where the big money is made, unless volume can return to the upside and some high-quality fundamental and technical stocks can start working on new bases.
new short positions: none
none
