Some Quick Thoughts On The S&P Bearish Tones
This doesn't happen all that much, but when you have three straight days of doji candles on the S&P, it typically signifies a reversal in sentiment. Not always - but most of the time. Outside of the two new short positions I established this morning, I didn't short anything else. I'm about 30% vested right now (counting my position in gold (GLD), and will look to perhaps add some more positions on Monday, if the market shows any weakness.
Here's the Doji's on the S&P
On another note, I went through over thousand charts this morning and afternoon, looking for ideal setups and I found plenty of them. I've added about another 70 stocks to my short watch-list, which more than doubled what it was this morning. There are some OUTSTANDING short setups and I'll be posting perhaps a top ten favorite setups or something to get your bearish juices flowing for the open come Monday. I already posted a chart on YAHOO (YHOO) that I thought looked REALLY good.
One last thing - I was utterly sickened by the treacherous officiating in the U.S. vs. Slovenia match. The U.S. won that game outright and deserved the win. I only pray that guy never ref's another soccer match again.
And one final last thing....lot of talk about the obvious head & shoulders pattern forming on the S&P, and whether it will be the prelude to a major sell-off. Frankly, I don't know, nor can anyone else know. A lot of people are saying that because it is so obvious and so many folks are talking about it, that it is bound to not work and thus trap a whole bunch of bears in to short position that they should have never gotten into. That could be true. I don't know, but trying to outsmart the market rather than trading off of what it gives you is oh-so foolish. I believe that the market will go down here, and likely off of the head and shoulders currently being formed. If it doesn't, then I cover my positions and move on to the next trade. Yes, I take a loss, but that my friend is part of trading.