Tuesday, August 16, 2016

SPY - a note on stock market timing...

Following the red…SEE THE CHART HERE

After a nice eight-day swing to the upside, SPY tripped a bit today into a red candle.

That goes along with a down trend in market breadth that has been going on now for 15 trading days, and goes along with a two-day uptick in the VIX, and 19 stocks on my nifty-fifty stock list gave sell signals today.

All of these indications (and a lot, lot more) are bearish but it’s been hard, thanks to the Fed, to get the market to go down so the obvious question once again remains: is this a Jan/Feb/Brexit drop coming, or just another one day dip?

Hard to tell, but red is red until it’s green again. That simple.

Me thinks the downside has to be played (with tight stops of course) because one of these days the dip is going to become a drop before anyone can catch it. Needless to say, it the drop becomes a plunge it will pretty much take everything with it.



Submitted August 16, 2016 at 08:32PM by thegodoftrading http://ift.tt/2bwlFLw

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