I've been studying the charts on various sectors & leading stocks since the post-market earnings-induced beat-down in AAPL last night. After struggling to find broad market or macro-analysis that was worth posting over the last month or so, the technical outlook for near to intermediate-term direction in the broad markets is finally starting to become a bit more clear. As there is quite a bit worth covering, from the broad markets, individual sectors, market leading stocks, etc.., throughout the remainder of the week, I will work on posting the most important developments & timely trading opportunities in post static (written) posts/charts as well as video commentaries.
As those trade & broad market/sector updates will take a while to compose, let me just state that at this point, it appears to me that a broad based sell of in the US equity markets appears quite likely. Broad based meaning that I see relative few sectors (again, referring to equities) that don't appear to be headed lower in the coming weeks. While I've been laying out the longer-term bearish case for quite a while, the majority of trade ideas on the site over the last few months, including my own positioning, have been longs/bullish.
Over the last month or so, I've been gradually adding short exposure & closing longs, primarily because many of the longs have their final or my preferred price targets & at this point, I plan to tighten up stops on most of my remaining longs and/or close some of those positions early while increasing my short exposure, quite likely moving to a net short exposure this week. As of now, all price targets & suggested stops on both the long & short trade ideas remain as previously posted although I may decide to official close some of the long trades early.
I just wanted to share those thoughts before the market opens as at least for now, the SPY, MDY, IWM and most other major US indices appear to be holding up despite the imminent fairly sizable gap down in QQQ, which will have taken out that 108.46 support level that I had recently highlighted. Again, more details to follow & I will do my best to reply to questions in the trading room & private messages asap although my focus over the next few days will be posting market & trade updates as well as managing my positions.