"The dollar remains strong but 3C suggests a pullback, which may give the market room to bounce."
Today, the market gave us a clue as to it's intensions. This is why I mixed it up yesterday. Hopefully the longs will move on the bounce, at that point, I'll be watching for signs of the end of the bounce-we sell the longs, add to or initiate shorts and we start making money on a market downtrend. So for now, I'm not adding anything, if your position is okay (email me if you need an opinion) then I'd say hold what ya got. We are letting our shorts bounce, I kept them rather small anticipating this so we'll ride that out and we are about 60% in terms of positions long and bout 60% in terms of capital short. When this is all said and done, I'd like to be near 85% short of invested capital. I'll let you know when I see a turn in 3C, but if the market bounce gives you a gift on the long side-20,30% gain or more-Take it and be prepared to start picking up shorts. I'm not sure how I'm going to give them to you because nearly all will line up the same day and I have over 200 excellent looking candidates.
Is this a bounce or more? 1580 of the Russell 2000 closed up-Strong right? No, they closed up on diminishing volume-the weakest of the 4 possible price volume relationships, this is a market that looks ready to bounce, but not very enthusiastic about it. Those kind of numbers are seen at the end of an up-move, not the start!
OF all NYSE stocks roughly 1650 closed down today, 3089 closed up on less volume and 1547 closed up on increasing volume-that is heavily lopsided bearish. Of the NASDAQ 100-77 of them closed up on lighter volume-EVEN WORSE! The Dow -30-26! The S&P-500 386 on lighter volume and only 65 on heavier.
You see what I mean-the market is petrified to move up. So be patient. Take a look at some of the past ideas that haven't moved for short term long trades, you can always run them by me or just wait. A Huge opportunity to back up the truck is days a way.
