Don't Chase

I just got through looking at as much as I could from Futures, currencies, credit, yields, TICK data, Leading Indicators.

I think this was a very real move lower, the charts are just right where they need to be, but as I said in the last post, "Wall St. isn't going to make this look like a clean, simple reversal to the downside", they are going to jerk it around, cause doubt, condition the buy the dip crowd.

However where it counts such as TICK data on the decline, that was very real, very bearish and extreme. Very short term charts for the averages are not terribly positive, but they are more moderate than the charts that really matter when looking at the bigger picture.

For example iof you looked at NFLX this morning, there was a pop that would have been a bit scary for a NFLX short, but if you look at the last 5 trading days, the upside momentum is gone, there's a reversal process, the important charts are leading price, so it's a matter of riding through the intraday games and I think there will be plenty.

I still think the F_O_M_C next week will have an unpleasant surprise.

In any case, the point of this post is, "Don't chase", don't feel like you missed any bus or that you need to take sub-par trades, the opportunities on the intraday games will present themselves. However, I also wouldn't doubt that this has been a very real move, there is fear among smart money, not so much dumb money as you saw by the Investor's Intelligence chart with all time lows of complacency.