At this point I’ll have to reign in my bullish stance due to the market’s failure to find it’s footing. At this point the most bullish charts out there are the short ETF’s and one has to respect that. To be honest I just reached max pain on my longs and whenever that occurs for me it’s best to go to the sidelines and clear my mind to decide how I want to proceed.
I sort of knew I was in trouble this weekend when I was actively searching out news to fit in with my bullish views and whenever that happens you might as well bet on the market doing the opposite. This market continues to punish traders for carrying positions overnight and rewarding short term behavior. As long as this is the case it’s best to keep your trading to a minimum.
The market could still rise here, but I’m not willing to risk any more capital to find out.