Time to be out Sports Fans
We have seen renewed commercial selling in this past weeks cot report and now you see the red arrow on the screen above last week. This is a mechanical sell signal based on COT data. Entry is another matter, but this tells us we now want to short this market. I know in my last post I said I expected this rally to last into May but part of being a trader is to adapt to what takes place on a daily basis.
I have continuously maintained that we had not seen the lows yet and I am still of that belief, so this is an opportunity for those who had not switched to cash in the retirement accounts to do so now. I have no idea if this is the exact high of the bounce, just that we are in a zone where fundamentals say the next big move should be down.
I have so many stocks setup for short trades that I am having a hard time paring the list down for the best candidates, and literally none on the long side. This acts as further confirmation of where we are.