Crazy Week Ahead With Leaders in Trouble

{+++} It's that time again in the market where I can just as easily make an incredibly bearish case as a bullish one. You need to sit up and take notice when all the weekly technical levels start to turn down. This is true not only with the indexes but individual stocks right now. Important moving averages have broken to the downside and MACD and relative strength readings are turning south.

Momentum stocks like KORS hit the "sell" screen on IBD this weekend and leaders like AAPL and GOOG look horrible for now. This is typical in a sell off, as strong momentum stocks get sold first and hardest. After all, there is no more positive momentum.

I wrote this over the weekend and basically telegraphs how I feel right now. I'm still a closet bull, but really cautious as we really could go either way. As you know, buying dips has worked for a few years now and still may be the ay to go, bit lets take it slow here.

The President has invited the key players in Congress to meet on Wednesday to discuss their plans to avoid the Apocalypse, but my understanding is that negotiations don't begin until Friday.

With that said, the bullshit machine should be running all week at full speed. This will also add to uncertainty, which the market doesn't particularly like.

I've added a few long ideas to watch this week. Please check the P&L for entries and stops. See you guys tomorrow.

Joe

 

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