alice

NFTRH; Mid-Day Market Notes

Well, here we go again.  Another day, another reading below the SMA 50… in-day.  Yesterday we observed the same thing, and then the market recovered (with crude oil’s bounce, which as suspected was not a legitimate reason).   So let’s realize once again, we are operating during trading hours of a market that has been toying with bulls and bears routinely.

Any talk of shorting is not a recommendation.  The main recommendation for a bearish view for most people is always cash.  But I will note that I shorted the SOX after it recovered yesterday.  I also re-shorted the Small Caps.  Today I added a short against NDX.  It should also be noted that as of this moment, I am still long all the items I was long over the weekend (at least so far).  So again, I am not really shorting the market so much as shorting against items I think are more vulnerable while holding cash and more defensive items.

sox

Here is the S&P 500, also sagging again.  Can the bulls take back this bearishness once again?  Well, market participants have been able to set their watches by it to this point of the grinding and dare I say somewhat annoying corrective consolidation.  So the status is the same as yesterday, pending any in-day bull shenanigans, the market can continue its correction if it remains below the 50 day averages.

spx

As for the gold sector, we talked this morning about it being done no lasting favors by war and terror.  In what has almost become a ritualistic exercise, I shorted again (JDST) to guard long positions, led by the booming AAU, which I hope some might have considered from its chart highlight last weekend.  But again, there is plenty of time with this sector and its key continues to be a weakening of the stock market, regardless of whether or not it takes an interim correction itself.

I will not jam your radar with more in-day noise today because a) I want us all to have our calm moments with our own decision making and b) because I will be out much of the rest of the day.  🙂