I was really glad to see the market rebound in the fashion that it did, but by the end of the day I had cashed out all my rentals from the other day and sit with 100% cash. To be fair I wasn’t randomly selling just to get out, most had hit my profit targets to the upside and I didn’t want overnight exposure at this point.
My market timing signal is solid green so I will continue to play on the long side and add strong stocks on intraday pullbacks despite my gut saying this market is toast. A few that I’m watching are:
JBLU BRO CCK ETN HUM NBIX
Nasdaq failed at the bearish wedge shown below. This is the key pattern I’ll be watching to see how it reacts at this level. I was essentially in cash by 9am my time as I felt the market had moved all it was going to. RSI is still bullish (between 40-80), but really want to see it turn up…not down.
Nasdaq 60Min chart
Strange sector to outperform today. Stocks in this sector that showed up on my screens were GRT GGP. Both have nice looking charts that I could get on board with if I had more confidence in the markets. I’ll still daytrade them on intraday declines as long as the down move is contained.
This chart worries me the most. Today’s rally failed to move McClellan Oscillator into positive territory. The TRIX becomes the indicator to watch with this chart to see if it goes negative. IMO the markets will fall hard if that happens.
Another sector that had a good day is the Airlines, but their MACD histogram is in a serious decline and given how far it’s rallied that should not be the case. However I have but JBLU on my watchlist to see how it reacts in the next day or two.
