Trading Plan In to Next Week

Bounce or no bounce in the market, the overwhelming chart signal probabilities are ultra negative, I'll show you later, but much more negative for say the QQQ now than even at the 2000 tech bubble top. More negative now for the Dow than at the 1929 crash top.

This is why I'll keep all short equity/core positions in place, if we bounce we have added positions we can enter at lower risk and better entries (more profitable), yet if the bounce is run over, our shorts are still working for us.

A head fake move right now for the IWM in particular would be a blessing just as the head fake move in the August cycle's stage 3 top at the September highs was a clear signal that the stage 4 decline was about to start.

I'll post later what I see that suggests a bounce and any number of events such as the Senate passing the $1.1 trillion dollar funding bill that is now extended to Sunday midnight as the House passed it with a continuing resolution to allow the senate some extra time, could be a potential "catalyst" for a quick bounce under the pretenses of a relief move.

Either way, I don't see how we can lose by staying short with or without a bounce.

So far the intraday charts that usually pick up where they left off on Monday don't look good, so that would suggest early weakness on Monday, although there's still a little time fro them to change before the close.

The QQQ and IWM specifically are right around a range so a move below that range ( a head fake move) would give them the momentum they need to make such a bounce, it's a failed move and a bear trap on a short term basis.

Any way you look at this, this market is going lower, thus I will stick with all shorts, add to if the bounce provides the opportunity, if for any reason it does not materialize, the shorts kkeep working for us until we can add again on the next correction.

More charts making the situation more clear are to come.