Today was probably the worst day I’ve had since this uptrend started a few months ago. It’s funny because I was starting to get bearish on the markets, or at least thinking we were going to get a pullback day after looking at the Vix yesterday, and I still continued to buy stocks long in the morning session.
Long story short…I’m all cash right now, but after looking over the charts tonight will a clear head, I suspect today’s down move is nothing to worry about. Volume expanded on the Nasdaq, but declined on the Dow while no major trendlines have been broken. I got shaken out of my positions near the end of the day and I wish I had that trade back.
Be worried when we get our first red candle on this 3line break chart. The ADX is off the charts. Normally when the ADX > 40 is cause for concern, so with it being near 50 it’s extremely high. However, shorting is too risky until we get a clear breakdown in the charts. I’m realize many people will be saying this is the big down move that’s been long overdue, but I’m just not seeing it right now.
