once again, as far as market updates go, not much to add that i haven’t already covered in the last couple of weeks. my primary scenario continues to play out and is still only in it’s early stages. therefore, at this time i continue to remain fully short, other than some dry powder via margin to add to any attractive opportunities that present themselves as well as any bounces that may materialize in the next few days, which i will view as an opportunity to sell into unless convinced otherwise. the one exception was that i reversed that FAA short after covering earlier today but mainly as a hedge to my existing shorts (plus the 60 min – daily charts setting up for a likely counter-bounce soon).
i will continue to micro-manage my trades, covering some shorts as targets are hit and rolling into new positions with more attractive R/R profiles as the opportunities present. going forward, i will start to search harder and harder to find evidence that this is just the long-awaited correction that even the bulls have been cheering for, in order to load up on all the names they were too scared to buy back in october when the R/R on the long-side was as good as it had been in a long while. i still don’t think this will prove to be a quick correction on the way to new highs but unfortunately, it’s just way too early to make that call with a high degree of certainty. however, i do feel pretty strong that irrespective of any bounces this week, the next 10%+ move from current levels strongly favors the downside vs. the upside. if and when the evidence begins to indicate otherwise, i will adjust accordingly. here’s the updated DXY daily chart (last one) as well as the previous charts in order.
