daily charts of SPY & QQQ plus 60 min SPY. once again, confirmed sell signals across the board. not the first time in the last few months that we’ve seen text-book sell signals and although the previous one’s proved to be bear-traps, one must understand that the odds have only increased and not decreased (as apparently the masses come to believe) that the next move down will be sharp correction vs. just an orderly pullback. of course, only time will tell. nothing wrong with putting together your wishlist of longs to buy on the next decent pullback, whether it starts today or next month, but just keep an open mind to the possibility that prices could start cascading lower as the excessive gov’t intervention into the market has create some very unnatural imbalances of buyer and seller (potential lack of demand underneath this market which could lead to a collapsing of the bids). if unsure what to do or afraid to pull the trigger on some shorts because you’ve been burned one too many times lately, there’s nothing wrong with going to cash. bottom line is that the markets are so overbought that the upside, before at least a half-decent consolidation or correction, is limited at this point so at the very least, maybe take some time to make sure that you have appropriate stops in place on your current holding to assure profits or minimize losses on any recently entered positions.
