The market caught a respite from yesterday’s pounding as the indexes caught a bump of about a half percent. Nasdaq a little better.
As a guy that has ignored the Fed and all the hype around their meetings for years, I will say that next week will be the biggest Fed event in years. The Big Kahuna. Because of this, we still may see some crazy trading between now and next Wednesday.
They say its a stock pickers market, and it is. The thing is, I’m seeing more shorts than longs right now. With five or six names on the list, its also the most short I’ve been in a couple of years.
The stocks I’m short I believe can still act poorly if the market rises. Shorts take some patience and usually wider stops.
I added TUP as a short today. In the chart below you can see that TUP hit the 21 day moving average and failed. I’m hoping over the short term this can trend lower and break to lower prices. A weak market will help.
Looking at the rest of our shorts and why I just love bear flags.
DECK– currently breaking bear flag lower
FOSL– after a bunch of bear flags that broke it lower, here’s another.
CEB– The third of 3 ugly bear flags and looks lower.
CAT = broke a bear flag and a bear wedge and still looks lower.
SQQQ is more of a directional bet on the Nasdaq 100. As long as QQQ doesn’t get above say 106.50 we are in good shape.
Tomorrow is Friday and I’m looking forward to the weekend.