Here we are again saying get ready to short again
It just seems like yesterday I said close out your shorts and take your profits. Here we are again saying get ready to short again. Well, I guess the benefit is the trades have been extremely profitable so far.
The markets have rallied significantly this week. Some pundits are saying the worst is over, I sincerely doubt it. Here is why. If you recall I have a major concern with the breaching of the 17,330 support level of the Dow Jones Industrials.
This hasn’t changed. The initial emotionalism around Brexit has subsided, but the uncertainty is the same, if not higher, and still remains today.
Q2 earnings season is about to start so the Q3 revisions will play a major part in this market correction. By this I mean the Q3 revisions will probably determine the severity of the this correction.
This is not over, so remain cautious on entering any new long positions at this time. We have had several non-confirmed buy signals in various markets, which as you know, we ignore.
We are going into a long holiday weekend, so I doubt traders are going to take any new positions until next week Tuesday. Chances are we could have a flat to down market today by the close. We will see.
This would bode well for us as I expect to enter new short positions upon the next confirmed SELL signal. When will that happen? No idea until we see the markets starting to refocus on earnings, which as of this moment they do not seem to be paying any attention to. Stay tuned and we will post Monday evening or early Tuesday morning.
Lastly, I would like to announce the launch of http://www.TopStockAnalyzer.com. This is a new joint venture between AIQ Systems, LLC and Fortunatus Advisors, Inc. Check it out over the weekend.