1. SOX is forming a bearish head and shoulders. I’m a big fan of technology leading market rallies and it can never be good when the semi’s are this weak.
  2. Financials look like they are on their way to the 2009 lows, after being rejected at the 38.2% fib.
  3. The Dollar looks like it’s consolidating before making another run. Lately a rising dollar has been bad for the general markets.
  4. Where’s the fear? The VIX has basically been tracking it’s 10 day moving average and just today it closed down nearly 6% below it. I’d like to see this get 12-15% above it’s 10 day ma, which would signal rising fear. We haven’t had that one big flush out to signify any sort of market bottom.


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4 Responses to “4 Reasons To Remain Bearish”

  1. Chris Says:

    Good post, Jeff. Hard to make sense of TA in the face of these central bank interventions, at least on a short term basis. The medium term patterns that you have mentioned still suggest the market has a long way to go before it is healed.

    The VIX is still above its 200 DMA so perhaps the bear case is still viable.

  2. jeff pierce Says:

    Thx for reading Chris.

    Central bank manipulations more like it. 🙂

  3. NoTribe Says:

    I’ve been without a clue since about 12 days ago, and for the longest time am just sitting on the sidelines. Made great progress on that bull run from Oct 4th, but have missed both the downside and this upside turn. Am just dumbfounded by the action, and couldn’t figure out an edge if I had to to predict. So am waiting on it. I have thought that by the end of Dec, we will see either a good bottom to trade from long, or a good top to short on, so am just waiting for that to happen. NUGT and DUST go 3x starting tomorrow, so that’s worth getting into the action.

  4. jeff pierce Says:

    You are doing exactly what you need to. No edge = no trade. You’re saving yourself from losses and preserving your psychological well being.

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