More Friday Blues
The Friday losing streak continues this morning as prices are lower across the equity index complex. Moving forward this afternoon, I do not see anything to reverse this downtrend we are involved with. In fact, I think staying short for an eventual retest of the lows of the year is worth looking at. Especially if we settle below 1328 in the SPH.
As for the velocity of this move, there is none. This is like watching paint dry. On these sessions, it is very easy to overtrade rather than manage your position and ideas. Locals are dominating the trading volume in both the SPH and NDH, while institutions are trading both sides of the market. When this occurs, we typically have fake-out rallies on short covering and fake-out breakdowns and forced selling. In other words, the screen is only telling part of the story. If short, stay with ’em — if long, the afternoon holds some hope — especially if 1322 holds for support.