Market Update-Action

I'm going to look at what 2 or 3x leveraged short ETFs that I have that I might add to or some that I might open new positions.

I think there's enough material deterioration to start adding CAUTIOUSLY and not SWING for the fences at this point.

Always keep your risk management in mind and position sizing. I prefer the 2-3x leveraged ETFs because the make the move down worthwhile, but they limit some of the risk of having too much leverage in Call positions, although if I see the right signals I may consider some speculative calls as well.

For those a little more conservative there's always the ability to short a non-leveraged product. I just think we are getting parabolic, the 3C tone has changed, it's probably a decent, fairly low risk area to look at adding some positions here. I do want to keep a little balance and longs that I like will stay in place, I'll be reviewing those as well to make sure there's nothing terribly wrong with them.

TICK data vs the SPY, note the earlier high in the SPY with TICK hitting +1300, then higher highs with TICK falling at each to the +750 area, intraday breadth is giving way.

 ES 1 min negative divergence, but more importantly..

 The 5 min that has been positive or in line as the market needed support to make these moves is now turning clearly negative in to these nearly parabolic price moves.

 NASDAQ 1 min futures also negative intraday

And the 5 min is certainly changing character for the worse.