Down Day For Stocks
Stocks were down today with their largest range for the week. I still would like to see the indices make new highs so I can look to short the Spys and Q's, but so far the gap has stopped this rally dead in its tracks.
I'm going to keep an eye on the above trendline. Notice how the trendline and the 50 day moving average meet around the 43.85 area which may act as support. A close below this level would indicate to me that the bears are gaining control of this market and that the weak groups I've been playing from the short side are beginning to affect our overall stock market. The groups I'm referring to are the home builders, banks, brokers, reits, lenders..etc
As of now I have no position in SPY, QQQQ or DIA but I am long and short various stocks.
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1 comment:
Kevin:
Thank you for maintaining such a thoughtful blog. I have read your blog for a few months, and have appreciated & profited from your observations (Goog inside week call is amazing)
So as my first post...I'd like to ask you about your QQQQ trendline. I tried to recreate it on my own, and it seems, that with todays down open the QQQQ have reached the trendline.
Am i correct? If so, would you take a short QQQQ position or look for further confirmation in the coming days.
Thanks for your response and your continued insights.
Adam.
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