Two Ways To Be Happy In This Market

If you’re in cash, you’re happy!  If you are short
the market, you are even happier!!  There is no end to the selling in
sight as we continue to see declines on heavy volume in the major indexes.

Eventually, almost every stock will follow the overall
market.  Recently, this can be seen in Qualcomm’s (QCOM) action as the
stock has tried to take a great earnings report and move higher.  It
is now testing its 50-day moving average under the selling pressure of the
market.

Playing in this environment can be dangerous from both
the long and short sides at this point.  The trend is down, so anything
by a quick short squeeze won’t yield gains by purchasing stocks.  At
this time, we have faced consistent selling and a short squeeze may eventually
be in the works.  This makes shorting right now riskier than usual.

For the most part, remaining on the sidelines until we
get a better view of the next rally attempt is a good way to go.