Tuesday, December 4, 2012

Markets move lower as volume increases

Today the markets moved down on higher volume signaling another distribution day.  This indicates the the institutional investors my have started to dump stocks.  On the other hand, the NASDAQ may have formed a reversal candle but that would need confirmation before we could consider it valid.

The VIX is also hitting up against it's 200 DMA which may turn it back down thus causing stock prices to rise tomorrow.  We shall see. 

Nonetheless the NASDAQ and the SPX have inched another day closer to their DEATH CROSS.  I expect prices to drop further this week but we have to be prepared for a move higher.  So, with our first position of shorts getting triggered today we are ready to add to our positions tomorrow should the market continue to move lower.  But, if the markets decide to move up we need to protect ourselves with stop losses. 

Here is my plan for tomorrow.  Buy my second position in SPXU & SQQQ if the SPXU hits 40.58 anytime tomorrow.  My stops will be set at 39.10

See you back here tomorrow.

AJ Coops

No comments:

Post a Comment