One last post before I shut down for the weekend. I wanted to point out that we closed today to print weekly bearish engulfing candlesticks (click here for more info) on multiple key stock index ETFs, including:
- SPY (S&P 500)
- QQQ (Nasdaq 100)
- QQQE (Equal-weighted Nasdaq 100)
- VTI (Vanguard Total Stock Market ETF, which tracks the CRSP US Total Market Index… pretty much THE entire stock market, with large, mid & small-cap stocks across both growth & value styles).
- IWV (Russell 3000 Index- a broad equity index composed of the 3,000 largest U.S. listed stocks, representing more than 95% of the investable American stock market).
- IWB (Russell 1000 Index- a stock market index used as a benchmark by investors. It is a subset of the larger Russell 3000 Index and represents the 1,000 top companies by market capitalization in the United States).
BTW- I only included the key indices that printed weekly bearish engulfing candlesticks after making a new 52-week or all-time high this week (hence, the potential that these could prove to be topping sticks). As stated in recent videos, the strategy to trade bearish engulfing candles is super-simple, quite effective (assuming you know when to look for the BEC’s & confirm with other bearish technical developments), and most of all, offers one of the best R/R (risk-to-reward ratios) in technical analysis. (i.e.- the loss potential, if stopped out above the top of this week’s candle, pales in comparison to the downside profit potential, assuming they end up marking the start of a bearish trend measured well into the double-digits.
Still not an “all-in” or aggressively short positioning moment, IMO, but certainly an objective time to have a starter swing or trend short position, awaiting the next key potential sell signals that I’ve been highlighting in recent videos (red support level/bottom of trading range breakdowns, solid breaks & weekly closes below 200-day MA’s, etc..).
Have a great weekend!
-rp