After all was said and done, a lot more was said than done. The P’s and Quack ended flat on the day. This leaves us mostly with a “rinse and repeat” from yesterday:
Again, and so far, the indices still appear to be stalling in their recent retrace rally. See the MIM-when it doubt, take the chart out.
Once again, most sectors still remain in solid downtrends. There are few exceptions such as Regional Banks but not a whole lot to get excited about just yet.
Bonds and Gold remain in solid downtrends.
Once again, as I often preach, I like to build a case and then look to tear it down. And right now, the evidence suggests that the market is still in trouble.
So what do we do? With a flat day, not much has changed. Again, the Ps and Quack remain set up as pullbacks. Therefore, again, if you don’t already have some shorts working, you might look to short the index ETFs until you do. Longer-term it’s hard to catch a trend in index shares (see my webcasts on efficiency) but shorter-term they can help to give you needed exposure. Continue to keep an eye out for a short or two. I’m seeing quite a few setups coming into today. The only caveat is that trading around U.S. holidays can be a little thin and choppy. Therefore, make sure you use liberal entries. And of course, honor your stops once triggered.
Futures are flat to weak pre-market.
For those in the states Happy 4th!
Best of luck with your trading today!
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