I sort of got cut off at the end but I was just going to say that we may get a temporary bounce when the Nasdaq reaches it’s lower Bollinger Band, but not enough that I will cover all my shorts. I’ll just start to trim some then.
The market is behaving very weak and I’m not seeing anything on the long side that I want to buy right now, but I am starting to put together a list of stocks that are overbought and could get some sort of quick bounce. I sent a couple out to my newsletter subscribers over the weekend and will be adding more if this selloff intensifies and stocks go on sale.
As for now I’m continuing to hold my short etf’s as the market action confirms the bearish call.
Downside volume is nowhere near capitulation levels as it should be 9-1 selling pressure (90%) when compared to upside volume. We were at 70% today.
“High volatility begets low, and low volatility begets high.” ~John Bollinger
