Today I got stopped out of my longs as they hit my entry price which reinforced the importance of taking 1/2 profits while you have them. I mentioned on twitter towards the end of the day that I got back short in DIA & QQQQ. Taking a look at the Nasdaq it’s easy to see getting rejected at the 50ema and when you combine that with rising volume it’s easy to take the short trade.
At this point any bullishness I had is gone, as all of my smaller time market signals are pointing down, along with my main signal. That long trade was worth a shot, but today’s weakness proves that momentum remains with the bears.
The James Bond Trade (I have no idea why I named it that..lol) seems to be working very well, and it’s too bad I didn’t have an opportunity to open a position. After that big gap up it really looked overbought, but people have a big appetite for bonds.
NASDAQ advance/decline is riding the 13/34 moving average lines down. Internals haven’t turned up so expect more weakness in the markets. It’s not really worth trying to analyze the markets in depth as August is a very unreliable month for technical analysis so I’ll continue to listen to my system, trade accordingly, and report how it’s all working out.
