Despite another down session with volume coming in above-average on the Nasdaq, there were not any new shorts for me to take in my scans, due to most stocks being either a bit too early in the move or some are a bit too extended short-term. The one very noticeable difference in my short scans to now to when the downtrend started in April is that Nasdaq/tech stocks are dominating my short scans the past two sessions. Since tech stocks are normally the leaders during uptrends, you can be sure that they are leaders during downtrends also. So if we see the market pick up on the selling and these leading tech/small-cap/IBD8585 stocks continue to break and lead the way down, things could be ugly for a while. It already appears clearly obvious to me that operating on the short side is the right play until we can see any meaningful rallies whatsoever on higher volume in the stock market. Until the proper charts in past leading stocks or tech/smallcap stocks setup, I recommend playing the TZA and FAZ. This is a Bear 3x ETF which enables you to be able to even trade them in your IRA. If you can watch the market intraday, you can buy these ETFs on every breakdown or resistance failure during the day. You can pick them up on bounces off the 50 day moving average when the ETF is making higher highs and higher lows. There are many ways for active traders to trade this market while we wait for the correct setups to show up. I have two extended possible shorts for subscribers. ADI and WAT.
new short positions: none
none
