My Thoughts On The Dow, S&P and Nasdaq

Last month I became bearish on the Nasdaq basically because it was showing relative weakness when compared to the other major indices. I put on a small short position and held it for about a month and watched it do nothing. If you bought or shorted QQQQ you didn't make any money for the past 5 weeks because the trend has been sideways.

What I have noticed is that stocks are having large moves even though the S&P and Nasdaq haven't done much. I do alot of short term trading and I see many stocks making large moves intra day. So day trading has been pretty good but position trading or swing trading has been kinda flat.

If you look at the above chart you will see a daily chart of all 3 indices. Notice for the last week how the Nasdaq has been making higher lows while the Dow and S&P are trending sideways to slightly lower. Because of this I tightened up my protective stop on the QQQQ short position.

It seems like the market is waiting for earnings so until then I think we will have another week of this sideways action before the market makes a move.