Bearish Feel Starting To Arise - Be Careful

Can the bears make something of this market... finally?

I have been very quiet on the trading front today. I didn't buy the dip, and so far it looks like that was the right play to make.

The bulls seem like they have gone stagnant the last three trading sessions, and I don't think we should soon forget what happened back on the 17th of this month when the S&P 500 has its 43 point sell-off.

That could very easily happen again! 

Call me crazy, but I think that we could see another similar sell-off in the near-term. The issue to be concerned with though is how to get short on the market when most sell-offs (actually all of them, of late) last just one trading session. Right now, I have one short position, but have yet to add more for that very reason.

And today we are breaking the 5-day moving average yet again. T2108 isn't as bad as I would have thought it would have been, only down 4.3%, but the bigger issue is the fact that the T2108 (% of stocks trading above the 40-day moving average) is only at 41% total, which is certainly bearish. 

Below I have my list of stocks I am watching from a bearish frame of mind, and willing to short if things get a little more dicey. Check them out, know which ones you want to short and the parameters you'll use in case you need to, so that you are ready. 

bearish feelings

Click here to download my Allocation Spreadsheet.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.