I'm still interested to see how the daily candles end today and their volume, but there are some really decent looking short set up candidates that are the kind of "Come to us" trades that we use these situations for. I'm thinking SCTY is going to make an upside move and it's in horrible shape so it's a nice looking candidate. FSLR is already making the move, the volume is there, if it were at a new breakout high, I'd probably be taking a a partial short in it now, but it has some clean/clear resistance at the $72.50 level in the form of a large triangle (usually tops when they're this large) as well as resistance zones) so it's looking like a near term set up. Transports, DJ-20 / IYT are still looking real good, I don't mind the partial position or add to yesterday at all, if I didn't do it yesterday I'd be doing it today, but I think it may have a bit more in the tank and a little better entry, but at least I have good exposure in case things go south like they did this morning and there's no more levers to recover. XLF is another I like a lot, just give me a little more on the upside and the trade for me there is FAZ long. Of course NFLX is in the area, a little more convincing pop would do wonders. AAPL is a tough call, it looks like it wants to retrace some of the lost ground from today, but not quite ready.
As I'm gathering these candidates that I like the most, I'm setting price alerts around the areas I think they look most interesting or probable. The market itself is not in good shape, but the ECB tomorrow provides the kind of potential volatility to get some of these moves done as does Friday's Non-Farm Payrolls.
What I've found today that's interesting is HYG, now this isn't going to recover and move to a new high, in fact I dare say it's in the process of lower highs and the next significant leg will be a lower low, but it has been leading this market by the nose so this is what I'm finding interesting and I'll look around a bit more to see if anything else might be cooking.
HYG 1 min today, the divegrence is mostly today, mostly in the flat area of trade which is very common.
As far as anything even significant on an intraday chart, like this 3 min, it's all today right at the flat range in HYG.
There's nothing of consequence on the 5 min chart and it's best, most useful signal is the following which has led HYG and in turn HYG has led the market so as you can see with 3C at a new leading negative low, even below the Aug. 1 accumulation/base, it's in trouble. However these intraday divergences aren't random noise,
that doesn't mean they'll be able to hold or be effective, but the point is, someone's trying as they are running out of levers.
And if you were a longer term investor , an HYG short and the probability of the next leg which we are just starting, making a new lower low (pattern of lower highs and lower lows = downtrend and also leads the market) would be very high. The beta in HYG is what makes it a little boring for me.
However, keep your eyes on the SPY, QQQ and IWM daily charts, the possible closing bearish engulfing candle and especially if volume peaks above yesterday's, that's a very high probability downside reversal.
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