Morning folks. Been a nice to days. Market has rallied nicely the last week or so. We have made nearly a 7% move off lows. as you can see by the chart we are strarting to approach multiple layers of resistance via price and moving average. Couple with we are starting to reach some overbought levels this is a good time to cool off take some profits, raise cash, and see how the market digests this run. A nice pullback to SPX 1040-1050 would be in my mind a good buying opportunity. Any further rise is the market to 1080-1100 area would be a great shorting opportunity as we would reach extreme overbought levels and hit some major resistance points.
As you know I believe we are in a bear market. All rallies will get faded in my opinion. And I will trade accordingly. By the end of the day today I will raise my cash levels to 50% or more and see what the market does. I will still be doing short daytrades and such but the overnight holds will lessen.
If you need to add a few shorts check out $BGZ. This is a reverse 3x etf. So buying it would short the general market in large caps. Its right on support and its getting very oversold so keep an eye on this for movement. A buy right near the support line with a tight stop under should limit risk.
