As you might know, I closed an XOM core short position to open an XOM long because it had good signals for a bounce, it was extended and just looked like a good position swap, that was late last week. I opened some GOOG calls that have been in the green to different degrees ever since, however there's one thing I'm seeing that is really making me extra aware of the market.
When we get market movement up or down, we can really see what is happening, we get much better signals. What I'm seeing right now (and this is largely confined to today so far), looks bad. I see it in a number of assets, but 1- day doesn't make a trend, it does however raise a red flag.
Ex.
XOM 15 min positive should allow XOM /to bounce, thus I closed the short, opened a long and wanted to wait to re-oprn a short at better levels.
However as the 2 min chart shows, there's almost instant negative divergences in to any upside as if all strength were being sold.
XOM 5 min is not pretty.
GOOG 30 min positive helped make the decision to open the call.
GOOG 5 min showing negative divgerences in to any strength.
15 min SPY should be good for a decent bounce.
However the 5 min chart shows a deeper leading negative 5 min chart.
Like I said, 1- day doesn't make a trend, but we really need to be on our toes with good risk management in case this market continues to sell all strength and doesn't allow it any upside.
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