…when you consider the deterioration of the Nasdaq advance/decline line. It continues to make lower highs and the -DI of the ADX is on top and looks to be ready to break out of the recent consolidation. The RSI turned back near the bearish 60 level and has been making lower highs and lower lows since the beginning of the year.

Of course it’s not a given as earnings could always please investors, but as trader’s we have to work with the data that is at hand. And while it’s tempting to jump back in on the long side, it’s not prudent at this point until some key indicators start to firm up. You don’t want to row against the underlying

I added to my shorts (1/2 position) near the open and may look to add some more later in the afterhours if my signal remains weak. If I add I’ll update this post in a few hours from now.

6 Responses to “Today’s Rally Was Meaningless…”

  1. jason2713 Says:

    I went into TVIX a bit today, burned me badly. I also saw the weakness, but of course, whenever I go short, this happens lol.

    I’m still holding onto it, but if we’re both right, I should be ok. Based on earnings tonight, I think the momentum definitely sides with the bulls at this point.

  2. jeff pierce Says:

    what was your entry? you have to be careful with 2x (anything) and not over position yourself in the event that the market temporarily goes against my signal. if it’s any consolation I see nothing that changes my stance in the charts tonight and will continue to short the rallies.

  3. jason2713 Says:

    I went in at 31.50 for about 50 shares. So its not that bad…but burned none the less. I’ll likely avg in here, but wanted to let this marinate for a while.

    I’m seeing the same thing.

  4. Today’s Rally Was Meaningless… - Athens Report Says:

    […] Of course it’s not a given as earnings could always please investors, but as trader’s we have to work with the data that is at hand. And while it’s tempting to jump … [visit site to read more] […]

  5. Alan Says:

    Does today’s rally change anything?

  6. jeff pierce Says:

    Signal won’t officially change until tomorrow. I’ll update what is going on with my signal tonight when I get my data in. Today is a big surprise to say the least, but I did add to my positions today although that’s not to say I won’t trim by day’s end. Those shares I added could be damage control to bring my cost basis down, but I’ll have to admit today feels like a game changer.

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