We thought that the bulls would try to put up more of a defense today but so far the bears are winning the day.
In last night's newsletter we put in a few support longs (BRCM ATI WLT and a few gold names) but none of them have triggered at this point. We also put in three shorts and all triggered and worked well.
SOHU target trade short to 64
We had wanted OXY and COG to bounce for a day and were surprised how easily they cut through support. OXY was listed as a short at 66
COG short 34
As opposed to previous pull-backs since the March bottom we are now under the 20 SMA on many sectors we follow -- this means that support buying has become more high-risk than in the last few months.
It's only 1:20 PM as we write this and today's close will be important but thus far the message is clear that the market for dip-buyers has changed and more caution is needed.
We still like gold stocks on important daily points as they started the sell-off before the SPX and are quite over-sold.
Update: One support long finally triggered, ATI 38.
Good day for our selections as all selections worked: 2 shorts, 1 target trade, 1 buy on support.