Stocks Turn Lower
Above is the exact chart that I posted earlier today around 11:00 when the stock market was breaking higher. As I pointed out in my last post, the S&P was testing the high from 2 days ago which is where I shorted several stocks and ETFs.
What I noticed at 11:00 was that many of the European ETFs such as EWP, EWI, EWG etc were very weak. These ETFs in my opinion are leading the market lower which is why I follow them so closely. The Euro currency at the moment is also another good indicator for stock market direction.
I think the S&P will test yesterday's low which is where I'd like to exit my short position. Some of the ETFs that I have short are already at yesterday's low such as EWP. Two weeks ago EWP was non-shortable but fortunately today the shares were available for shorting.
There is usually a bullish bias surrounding the memorial day holiday so if things work out for me, I'd like to be out of my short positions by either tomorrow of Friday. Let's see how things go, this market can be vicious!
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1 comment:
This rally ought to be good for at least a month, as large gaps off multi-month lows mark bottoms. Then Kevin's 4-year cycle bottom in the July to October period can play out. It always pays to buy when it looks like things are becoming unglued! This will probably not end well, but when everyone is focused on that fact we go up. If SPY crosses 109.50 today we will take off, albeit with high volatility.
DG
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