Not an Easy Selloff to Maneuver

By @ibtimes on

While I am happy to be directionally correct on this selloff, I will admit this is one of those times that talking about the trade/direction of the market has been much harder then executing trades on it would have been.  While we are once again at lows of the move (which I DO NOT expect to hold), the constant late day rallies have caused havoc, and make any tight stop loss strategies difficult to work with.  Yesterday's rally during the majority of the day was an example - as it made no sense.  So while on the surface this has been finally been a victory for bears, it has been like riding a bucking bronco - especially when the rallies have come for no apparent reason.

Again, as I said a week or two ago, if we broke the 50 day moving support the problem for bulls is there is no real support for a long while.  That is a condition of a market that effectively (aside from a 3 week break in November) went straight up for 6 months.... along with a short base that threw in the towel a few months ago.  Ironically the retail investor had just come back into the market per the inflow data about 6-7 weeks ago...

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