Well it's starting to look like I made the right decision, NOT to chase the July rally; as we see the market quickly give back all of the gains of the past several weeks, and the Nasdaq testing support @ the June high (levels)
$COMPQ Nasdaq - Of course I'm going to keep the downside targets close to my chest, but this shows the June support I just mentioned, as well as where the price action was rigged higher on light holiday trading. Typical Wall Street dirty tricks
Oh, and remember last week, when I was pointing to the 20 day moving average, and warning people not to chase the dumb money. Broken!
Speaking of the dumb money:
This is exactly the time period that CNBC was trying to convince the below average investor that a so-called, "historic rally on the Dow Jones", was somehow proof that the rally had legs.
Of course that was all BS. Historically the Dow always lags the rest of the market. CNBC knows this.
$INDU - does this look like the longest winning streak since 1987, to you?
I have lots of charts I'd like to share, but the hedge funds are always watching me.
I can show you the Bull Trap in the 3X small caps fund $TNA
$TNA - Good example of a bull trap!
I'd like to reveal more charts, but in due time.
$VIX -
This is the biggest weekly move we've seen on the $VIX since march, so I think this sell-off has legs.
Looks like we could see a little more weakness, as we trade into the weekend, but at some point there will be a little short squeeze, and possibly even a retest of the highs.
If you traded in 2008, then you already know to expect every dirty trick in the book. Stay nimble.
Defensive Sector Trades
I see a couple defensive sector trades, if you're looking for something like that - $99. The PayPal link can be found in the side menu.
Mullen $MULN Update
Funny, no sooner than I updated $MULN yesterday, we saw the short sellers squeezed, in what looks like - it could be - a bullish reversal.
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The broader market
I think there is a very good chance that we're going to see more weakness in certain sectors, so I would stay somewhat diversified, and look for sector rotations.
Watch the moving averages, because that seems to be about the only thing that works anymore.
Have a great weekend,
AA
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