While it feels like my system has been flip-flopping a lot lately it’s important to know that this is something that happens with any market timing system. The last time we went bullish last week my main system when bullish, but my scans never really generated any decent longs. Therefore it’s important to keep in mind what determines whether your bullish on the markets differs from what determines whether your bullish on individual stocks, and sometimes one doesn’t mean go buy the other.
Here are a few short candidates, although with 4 days down on the Nasdaq we could bounce tomorrow. However, I did open some shorts on the QQQQ’s and bought a few contras. One other nugget I’ve implemeted into my system is when the markets give a short call I get short right away the indexes because fear drives markets lower, and that typically happens very fast. When I get a long call one generally has a little more time because it takes the markets a little while to gain some bullish traction and that gives investors some time to seek out great long stocks.
All of these should revisit their lows.
