regarding that JJC short below, just keep in mind that copper (aka Dr. Copper, for often accurately diagnosing the health of the US and Global economies), has recently made a sharp divergence from it’s nearly lock-step correlation to the stock market. it could just prove to be a temporary aberration but definitely something to monitor. believe me, i know that i seem to be skewing my market analysis to the cautionary side right now and as i said, i do plan to do a video overview presenting both the long-term bullish and bearish views soon but my reasoning for spending so much time on the warning signs that this rally may be in jeopardy is because you can,and probably are, getting the bullish case and market cheer-leading out there from the main-stream media and most trading blogs (as the majority tend be trend chasers, not predictors). therefore, i will continue to post what i think is most relevant at the time, regardless if those warning signs play out or not.
red flags or not, i will continue to post both long and short trade ideas and leave it up to you as which one’s to trade and how to trade them. remember, if the evidence to be long vs. short seems overwhelming and you are not comfortable “picking a team”, consider going to cash until the markets present a more objective entry on either the long or short-side (e.g.- a nice correction down to a key support level with the charts confirming an good entry to buy the next dip or maybe solid longer-term sell signals across the board to confirm a swing short entry).
another option is to trade a long/short portfolio. we are in the mist of one the strongest uptrends in decades yet i’ve just posted several short trades below that have either already hit one of their profit targets or are currently profitable in still in play. plus, there have been many other short trades recently completed as they hit their final targets. again, those were/are counter-trend trades in one of the most powerful rallies in decades so it just goes to show that money can be made on either side of the trade in any market conditions if you trade the best looking patterns with the best R/R profile.
here’s the chart of JJC (copper etf) vs. the SPX:
