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Dumb luck catching all these moves right? Now it gets tricky.

For the record I sold the MT calls this morning for 44% and closed my 2x index longs today at the close. SPX did 6.3%, NDX did 7.4%. A very big day. I’m back to 100% cash.

I mentioned on Sunday that I’m looking for a whipsaw here. Which means you will start to see buy signals on the things you know and trust to make trades with. However, that is likely the spot where they send the market back down. Maybe they dick around a little longer around the 21dema to really fool people. You want to use the 20 use the 20dma. It doesn’t matter. You have to remain bearish thinking on the overall trend until that trend changes from being bearish.

We actually saved some Monthly charts today. The COMPX and RUT both look better on my charts than they did previously. SPX is still red. If we have any minor selloff in the next two trading days that will likely put a sell on all 3 indexes on a monthly basis. Weeklies are all down. Daily charts are starting to turn up across the board. What I’m expecting, has been explained with examples here.

Although I think there is room to move higher in the indexes and individual stocks, I’m not crazy about many stock patterns I can find. Its better to play intraday on the long side or just be bearish right now until the charts turn bullish. Gold looks constructive still as well as Silver.

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