Today was yet another day of where the market decided to selloff in the final hour leaving most indexes near their respective LODs. The good news for bears is that the market is still in an overall primary downtrend and the recent closes are real weak indicating we could very well break wide open when volume returns post-Labor Day. The bad news for bears is that there continues to be no heavy volume follow-through to the random high volume selloff events and the low volume selloffs and rallies overall has the market going nowhere in the near intermediate term. It is still anyone’s ball game as volume remains below average almost every day. Bulls have some positives mentioned here and in the longs analysis and the bears have some positives. However, there is no clear side that has the advantage right now in this market. We have two new short positions for Tuesday that have great reward-to-risk setups. Since no side has the advantage we must continue to keep all shorts/longs small until we get a clear direction from the market. Sometimes the markets rally hard or breakdown hard. Sometimes markets go nowhere. This is a nowhere period. You can NOT force performance if it is not there. 130 years of historical facts proves this.
new short positions: BIG DKS (…and yes someone in the Gold Forums has already made the joke. LOL!)
BIG is putting in a bearish reversal near the 50 and 200 day moving averages, closing near the LOD, on strong volume with BOP falling to a lower yellow level. Cut your final loss with a close above the 50/200 day moving average area, if the stock does not move lower immediately.
DKS is breaking down below the 50 day moving average and nearing a breakdown below the 200 day moving average, closing two cents off the LOD, on heavy volume with BOP falling to a lower yellow level. Cut your final loss with a close above the 50 day moving average, if the stock does not move lower immediately.
