Yesterday turned out to be a great day for me and for bears in general. The day before's bull move was odd - very odd - and yesterdays breakdown just goes to show how made up the rally before was.
So yesterday was a real breakdown and market is not just going to turn around and rally over here. Best case is for a couple of days back and fill and maybe a little bounce before the move down continues and maybe finds a bottom this time around. So at minimum I would say a trade-able bottom is atleast a week away - most likely more.
But instead of trying to guess, lets wait and see what the market internals tell us.
The MCO is very oversold. I dont think it will continue to move straight down from here. Most likely we get a bounce and then probe a little lower before starting to build texture and bottoms above bottoms. But this is a process that will take time which is why I mentioned atleast a week before we get any kind of bottom that can be traded.
The NYSI is below zero and this is not good for the IT bull case. It is going to continue down for a while and most likely the market with it.
Coming to my positions. I think I am very short side heavy at the moment. And volatility has increased a lot. Time to lighten up a bit and maybe reload later. I have already outlined my positions in earlier posts. I will be lightening up and taking some profits today.
Best,
PM
So yesterday was a real breakdown and market is not just going to turn around and rally over here. Best case is for a couple of days back and fill and maybe a little bounce before the move down continues and maybe finds a bottom this time around. So at minimum I would say a trade-able bottom is atleast a week away - most likely more.
But instead of trying to guess, lets wait and see what the market internals tell us.
The MCO is very oversold. I dont think it will continue to move straight down from here. Most likely we get a bounce and then probe a little lower before starting to build texture and bottoms above bottoms. But this is a process that will take time which is why I mentioned atleast a week before we get any kind of bottom that can be traded.
The NYSI is below zero and this is not good for the IT bull case. It is going to continue down for a while and most likely the market with it.
Coming to my positions. I think I am very short side heavy at the moment. And volatility has increased a lot. Time to lighten up a bit and maybe reload later. I have already outlined my positions in earlier posts. I will be lightening up and taking some profits today.
Best,
PM
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