Diminishing Edge
There’s an old adage that when
you have nothing good to say… I
personally felt fortunate that the first couple of ‘looks’ to our subscribers
were good ones — but you had to be in quick and aggressive. With the balance of intraday trade thus far containing itself to roughly .30% in the S&P500 ETF
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you can almost see ahead of time that this is one party that you don’t want to
overstay your welcome.
The quality of alerts that continued to go out
today were quite strong in my opinion but the missing ingredient — lack of
confirmation by the market — was quickly making this a ‘day to stay away’. After
a couple of alerts in a row to our subscribers, that didn’t act properly, it was
time to put up some words of caution about not all trading days being equal.
11:17:50
Technical Thoughts
Personally speaking–the action has become increasingly ‘tricky.’
After yesterday’s nice upside trend day off price supports, this is probably to
be expected. The market, in this technician’s opinion has continued to ‘show its
hand’ with Monday’s action — but with the holiday nearing and trade typically
finding a range, or slight pullback after nice, outsized gains, the advice from
this corner is to ‘keep it light and tight.’
With the 30-minute chart setting up in a ‘broadening
formation’ — something akin to a reverse symmetrical triangle — and session highs
banging technical resistance on the extended time frame, there was a bit of
technical confirmation as to why things were definitely looking temporarily less
bullish in this corner.
Here’s the chart of the S&P500 ETF
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PowerRating)
that helped raised the ol’ flag of caution, so to speak.
With breakouts starting to look more like
‘shakeouts,’ this ‘cautious bull’ just doesn’t feel like being a part of any
turkey shoots before the actual holiday. Sometimes even bulls have to ‘steer
clear’ of some of the market’s upside in order to maintain the edge, and for lil’
ol’ me…this may in fact be one of those times.