COMPX chart hits our 1880 target which triggered more and more shorting today. Possibility of Compx hitting as low as 38% retracement at 1815.
I WOULD URGE traders not to be buying long positions looking for bargains. Don't get influenced by traders trying to chase miniscule upside in rapidly deteriorating markets. Marketgems will time some long entries this week, but we certainly won't be holding longs prematurely. Internets are a perfect example of NO NEED TO TIME. I entered 4 internet put plays and for 1 day EBAY wasn't doing to well, then YHOO was picked up figuring we just needed to have a June put play and the heck with timing every single bar. Now all the 'nets are raging shorts and tanking!
We take a number of 11:00 rallies like we had today and be very diligent to SELL THOSE RALLIES at the first sign of a bearish candlestick and reversal (it should take one bar on the 5 minute chart for that reversal and the next bar for the confirmation) Don't be influenced by traders who have been averaging down for weeks, when we get it IT WILL BE AT THE BOTTOM and we will not STAY IN until we get more than a 1:00 hour 11:00 - 11:30 bear flag pattern failure. We've urged traders for 8 weeks now to look at bear flags as they are "temporary pauses that refresh" and not read more into them than that. Still very aggressively shorting rallies in dow as well as we added 2 new short sectors today
The only time I trade the bear flag is at the 11:00 to 11:30 reversal area with clear overhead resistance waving its flag at me letting me to know where I might get stalled. These few trades have been in KLAC exactly at the break above the 20 ma and sold at the very first bearish harami as we teach all our traders. Other longs were a few 'earnings plays' especially in the retail sector but other than that, its AGGRESSIVE SHORTING rallies.. simply because we are reshorting after the 'pause that refreshes' and fellow shorters covered.
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