Still Quad 3
Do not get overly bearish! Be open for a signal change!
So, we still have a Micro Quad 3! (I write that blog post before the open! I will be away from screens today, if anything changes (which is unlikely) during today, I will inform you over the weekend).
No reason for a victor lap here, do not get overly bearish!
So far volume has been tamed.
We are close to a breadth oversold signal
Stocks (and even more Bonds) need to adjust to “higher for longer (than thought after the Fed meeting), but that does not mean we cannot get a rally after this correction: if earnings are good this can turn around! Sentiment is bearish going into the earnings season. Even if they are not stellar, we might get a bid!
Seasonals!
Quad 4 exposures show a bit of strength here, but not enough to call for crashes!
Again, do not go overly bearish, be open for a signal change. Do not anticipate it either, wait but be open!
Strategies:
Canslim, Breakout Trading —> Cash
If you have to be long (legally) —> BRKB
Small cap value momentum with a growth tilt (hedged) still fine here!
No touch (e.g. do not go long!)
Bonds (tons of bottom pickers are in the red now!!! We warned all the way to long bonds, they are not bullish trend and you do not long something that is not bullish trend! Also we have no Quad 4!)
Gold (still not bullish trend, no Quad 4)
Defensives (not bullish, no Quad4 trend and they trend terribly)
Quad 3 exposures: if you are long, fine, manage the positions. But too late for me getting long here!
Shorting:
I would not short the market here! Much too late and (see above) breath is close to a bottom.
All right, have a great weekend.
All the best and best regards.
Andreas
I am following on twitter:
@howtoswingtrade @Qullamaggie @P123Finance @Crowded_Mkt_Rpt @TheShortBear @42MacroWeather @systvest @Stage_Analysis @themarketradar @pinebrookcap @maxxxmueller @ttmygh @MissLowRisk @jsmian @MacroOps @HemmerlingKurt @RobertPBalan1 @1charts6 @OptionBit_Trade @meridiencap @ShawnCrichley @PrimeTrading_ @Quant_Kurtis
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