We have been short TLT, and added a short in September Treasury Bonds at 173’14” Thursday. With Fridays selloff we have lowered our buy stop to breakeven, and we look for bonds and TLT to continue lower. We did this trade because of the Technometer reaching above 50 which is overbought, and we felt a downtrend had begun. 5 Minute Chart – After the initial selloff, we was wanting a bounce to sell, so we …
Stocks are working slightly lower, but with no real selling pressure coming into the market. For now, we still expect the Wyckoff Wave to continue to work lower over the immediate days ahead.
We have been short and looking for the Wyckoff Wave to rollover. Today we traded lower and possibly in the early stages of some type of pullback. We do not want to see a rally above todays high, or this will postpone the expected correction. Hold short term short positions.
We are short SPY, VNQ, XLE. All three positions are having nice moves to the downside today. Hold Short Pro Trader Videos
Our Wyckoff Technometer is now back to overbought levels on the majority of the indices I monitor. We also have in place the divergence with the OP that Jim O’Brien has been discussing on his updates. So with these tools, we feel the market will have a difficult time moving through resistance at the top of the trading range. We expect a pullback back to the bottom of the range once again….
Stocks have started Monday morning off with more pronounced selling. We are going to continue to hold shorts as we expect still lower prices.
Markets have finally turned down with a vengeance as we had been looking for. We look for still lower prices so stay short all positions.
When we covered our shorts in the SPY, VNQ, and XLE last Thursday we said we was looking for an oversold bounce for a few days. With todays gap opening, we feel we have had the rally we had been looking for. Lets see if we can close weaker today and begin another reaction further back into the recent trading range.
We had stated Thursday at the low that we thought we could have a few days of rally to relieve the oversold condition of the Technometer. We are currently up 15 points on the Sept Emini tonight which should give us a nice rally for Monday. Up at these levels we start to be more interested in being short once again…. Stay Tuned!!
As we began the day, we knew that short positions had to be monitored closely as Mr. O’Brien had stated in his Daily Pulse of the Market. Our Technometer readings were nearing oversold, and as you can see from the attached chart, volume was not coming into the market as it appeared demand was withdrawn in the opening hour today. We took the opportunity to cover our short-term short positions on the early weakness. We …
With stocks opening sharply lower, we took the opportunity to cover our recent short positions in SPY, XLE, and VNQ. We gave the trade update on our Twitter account to try and show people that the Wyckoff Tools are very helpful when it comes to their day to day market operations. Our Wyckoff Technometer was coming down into the “Oversold” territory, and we felt like we could make a short term bottom and relieve the …