As expected, the tech mega-caps which were behind the rally this year have reversed and dragged the SPX with it. Those who thought that I was crazy seeing lots of weakness are going to have sleepless nights if they remained fully exposed. Sure, I didn't know what will happen, but price is always the last thing that turns when reversals are taking place. Here are few quick charts to see where the damage is coming from.
Since the stock market continues to be too risky to hold long-positions in stocks overnight, the gold stocks might soon be in play. Right now, all the gold-miners look absolutely terrible, but this might change in the near future because the US dollar seems to be reversing at resistance, and Gold also seems to be reversing.
The bulls were not able to save the market, the bounce in the indices was weak, so for time being the market continues to be under pressure. Here is some update on the gold stocks which look horrible right now !!! But when most traders are afraid to trade against the crowd, that's when the most money can be made because the stops are tight and the rewards are huge, so being stopped few times on very early entry is not an issue if one is very disciplined.
lol.... you hit all 7 of my "Fat Man" stocks in the one picture. https://www.elitetrader.com/et/thre...unny-sort-of-bull-market.374812/#post-5821845
Update on US stock market: To me the risk parameters are still suggesting weak market. It's OK for short swing trading, preferably in uncorrelated (strong) sectors), but I'm still reluctant to hold naked long stocks overnight in the tech-stocks or in stocks which are somewhat correlated with the indices. Will see what happens, the market always has the last word and is always right. The indices are now at an interesting zone, here are few charts.: