Quick Market Update

I think for any trades to fade the market, keeping it simple is best, pick a couple of assets. Right now I'm looking at FAZ, maybe GLD or a 2x leveraged Gold ETF, but even more than that I like GDX or the 3x leveraged version, NUGT.

This is what is happening in ES (SPX futures) as well as the SPY.

 ES 1 min, at each successive move higher, they're chipping away at ES and SPY, this isn't the kind of signal I'd take right now, but it gives us some idea of what's going on, it seems someone is getting some great utility out of this to move a position or establish a short.

I glanced at Leading Indicators quickly and I am not sure what I expected to see, but I was surprised at our two sentiment indicators (these are not retail sentiment like StockTwits).

Both are not following this market move, in fact  quite the opposite.

Here's the second.

HY Credit is about what I expected, the key here is it is not following the market, it has giving up a little as well, to me it looks more like it's setting up for a fade/sell the news type event than an all out collapse. The thing I don't see yet is the fear, I think we need to see that.

Again the assets that are of most interest to me are Financials, Gold miners, gold and silver to a lesser degree and of course just simple inverse ETFs.

There's often a feeling of, "I don't want to miss this move" and people get in way too early. The situation in D.C. is way too fluid right now and we still have Fitch as you may have heard last night taking the S&P's place for a possible US credit downgrade, that may be on the horizon no matter what happens.

I'd rather miss the trade than to get in on a shaky signal. I think when the time is right, the signal will be clear, I'd urge some patience until then.