The investing climate has shifted after the failure of the markets to follow through on yesterday’s strength. Prudent investors should be 100% in cash if they don’t want to short the indexes, which I did in the after hours market, while aggressive traders should be looking for shorting opportunities.
I have no idea if this is going to be a valid downturn, but I see no other course of action as there is enough weakness in important sectors, individual stocks, and key indicators I follow to warrant short positions.
Another important point to make here is I didn’t see one bullish stock on my screeners tonight and today I had many stocks on my watchlist fall off due to weakness. This generally happens right before a significant downturn.
