Please note that I have intentionally been keeping the new setups on the light side lately as there are already a ton of existing short setups and active trades on the site, many of which have been offering very objective add-ons or new short entries as they have either hit one of their early targets and bounced back to resistance or have recently broken down from well defined patterns and provide another objective entry on a bounce back to re-test those patterns. As long-side trades are clearly counter-trend trades at this time, I do not have many long setups or active trades at this point although I do plan to start compiling a list of attractive bounce candidates that I plan to trade as soon as my next primary targets are hit (QQQ 61.54-61.65; SPX 1355-1365; SPY 136.25-134.85).
As I mentioned at the end of last week, there is the possibility of more upside on the bounce off the support levels that were hit last week although my preference is tilted towards the markets dropping another 2 – 2 1/2% or so to the aforementioned targets (particularly T3 on the QQQ daily & 4 hour chart) before any meaningful bounce. As such, I have continued to add back the short exposure that I reduced on Friday when T2 (4 hour QQQ chart) was hit.
HD will be added to the short setups category with a short entry to be triggered on a break of this ascending channel on the daily chart. The first two targets are listed although I may extend these targets depending on how this trade and the broad markets play out going forward.