Now, this time we have a daily chart of $aapl. In a tweet yesterday I said a new high close on $aapl would change my bearish bias, I lied. Not exactly a lie but I should have been more specific because I got a new high close but it was on a doji looking, evening star looking bar.. No bueno. Checki it out below.
Below we have the $xlf. The Amex SPDR financial select sector fund.
and without them this whole thing falls apart. So watch this like a hawk..
I'm not just pulling technical analysis out of my ass here traders. I'm not contrarian just to be contrarian. We know that we're not in a normalized market, yet we still know how this abnormal market works. It distorts the regular ebbs and flows of the market. It elongates rally's and exacerbates declines by handing out false senses of security like balloons and lolly-pops at a kids dentist office. Look at the $comp weekly chart.
This is not a call to sell everything you have and get short. It is a call to sell your $aapl shares though as I think you can get them back cheaper later. But as for your winners that you've caught 25% or more in you should have a enough cushion to withstand a normal correction. Maybe you hedge a bit as a quick look @ the $vix shows it's cheap to do now. More than anything it's a call to be on guard. We don't know which way the market will go but we can collect clues. Most people start talking about the market going down once the market has already broken badly to the down side. This is my attempt to give a heads up before that happens.
Anyway, happy hunting traders, and good luck!