A Few Charts-Back on the Short side

Last night I warned that this market could turn very quickly,
"I would continue to hold the longs. I WOULD NOT ADD to them. Remember, this is a correction, not a bull market move. Smart money is selling into it and soon you too should be selling in pieces, taking some profits off the table. Do not get greedy and hold too long. We should see the reversal in 3C, but I do not know if they did the same as we did and set up a larger core short position, if they did, then the change in the uptrend could come very quickly."


Today at 2:07 we sold all of our longs at an additional profit and started short positions. I intend to add to those shorts, but at specific levels and when 3C suggests it. Below $104.50 this time I doubt very much will be a shakeout, i think it will be the break of a Broadening top, at that point we want to be pretty close to fully loaded. Remember, markets fall faster then they rise.


We started with Short leveraged ETFs, we may add individual stocks if I believe the return in those stocks will be greater than the ETF's.


Here are a few of the charts of some of the ETFs I mentioned today. Click on the charts for a larger view. All have very positive divergences, as I mentioned, we are long term bearish and were short term bullish for the bounce only.

Now it's about correctly putting these positions together. We have reason to suspect downside so we started the position. As the market moves in our favor and the signals get stronger we'll continue to add. This is part of our risk management, not add everything at once as the market can be very unpredictable at a top like this.


The nice thing about the shorts is we will be entering into a trending trade, there's a lot less to do. Not to try to up sell you, but it would be very helpful for you to have my Trend Channel Custom indicator which is only available on TeleChart or StockFinder. 

This system adjusts to each individual stock and takes arbitrary opinion out of the equation. With my Trend Channel (which received an award) lets you catch the meat of the trend and get out before the lateral volatility (opportunity cost). Other methods are too easy to be shaken out and arbitrary decisions could have left you with a gain of 10% rather than 50+%


If you want to take a look at the charting software, click the links below. I am an affiliate so i would appreciate you letting them know Trade guild sent you. In addition, this is the only two platforms that will run my 3C indicator which you see above.






I'll add the positions in the post below to the spread sheet and be on the look out for any other interesting trades. This should have been a good week for most of you, I appreciate the emails and I'm glad to hear that so many of you are doing so well. Just keep the risk management in the forefront and you should be fine in any weather.


One last note, I'd like to create a library of common technical indicator, show you their faults, how Wall Street uses them against you and how you can use them to turn the tables, so send your suggestions of your favorite indicators and we'll get that library up for you. any other requests, let me know.