Glad to. SOXX was recently rejected off downtrend line with next sell signal to come on a solid break below the minor uptrend line & I still think the semis offer one of the largest profit potential for a swing/trend short trade in the coming months of any of the major sectors. Daily chart below.

I believe that the “bullishness” you refer to is simply perception. When the stock market goes up, that seems to be, and in that particular instance, is bullish. When volatility (and of course, the $VIX) is elevated or rising, then the rips, just like the dips, tend to be more impulsive (larger in scope, more swift in duration). Hence, it is only natural that the rips “feel bullish”, especially when one is positioned short.

Bottom line: Take a step back & move away from what’s happening on the 1-minute & short-term charts while taking a look at the bigger picture (60-minute or daily charts). The stock market has clearly been in a downtrend (making lower lows & lower highs) since July.

To add to that, during the big corrections & bear markets, volatility is almost always elevated so that’s just something one will have to get used to if planning to profit from short-selling during those periods.The impulsive nature of the counter-trend rallies during a downtrend (swift & relatively large gains) is always why I put so much effort into actively trading (covering swing shorts & reversing long to game counter-trend rallies when they appear likely).

Thanks Randy, always appreciate your insight.

Do you have any insights on the current volatility and reasoning behind it? There seems to be quite a bit of bullishness mixed in with these rips.

Also, do you use the put/call ratio in your analysis and if so how do you apply it?

funny, Same Sh*t Different Day

Not sure what SSDD is? Doesn’t seem to come up as a valid ticker. Pls clarify.

My thoughts here: https://rightsideofthechart.com/nq-qqq-at-resistance-time-to-sell-the-rip-again/#comment-29515

Not crazy about the fact UNG was sent back down to the middle of the recent trading range after getting rejected off T2 again. However, it is at the 7.15 support level, oversold, with the PPO poised to make a bullish crossover on the 60-minute chart below (see previous similar technicals on chart).