Friday was indeed a distribution day for the indexes if we are going by the factual numbers alone. However, if we look at the total intraday action, we can clearly see that the big intraday reversal on top of the heavier volume was actually bullish. The big intraday reversal left the stocks in my main short scan well off their LODs which makes it extremely risky to enter a new short. Still, I did have two stocks qualify as “extended” shorts if you don’t mind chasing. In this market I do not recommend chasing ANY stock on the short side. However, if we were in a real big bad bear market, stocks like LOPE and HAR probably would still be good for more downside. In this market, that is just too much risk. Cash is king, on the short side and overall right now. Longs are looking better and better but until we get some heavier volume rallies I wouldn’t get too crazy on that side either.
new short positions: none
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