2/23 Recap. The Sell Signals Continue To Mount.

This morning we tested that uptrend I pointed to yesterday dating back to October and touched a hair below it and reversed up. In my experience these trendline tests, if repeated, eventually lead to a break. Aside from that, the 8 and 21 EMA crossed which is a bearish indicator. So if you’re a conservative investor, this is definitely a spot to lighten up on the risk, finally, we’ve had a tremendous run. I was hoping things would carry on, but it’s ok. I don’t know about you but I was up almost 25% vs 4.4% for the SPY coming into today

So, yes I gave some back recently but who cares, I lightened up because I did not like what I was seeing on the technicals. We’ve done great these last 2 months, no point pressing it, and we have inflation data tomorrow morning.

Here is the bearish crossover I mentioned, see the blue line crossing over the pink line? That’s the 8 ema and the 21 ema, this is a death cross on a shorter, but quite important timeframe. I would expect continued weakness from here, for a little bit at least. We also tested just below that trendline as you can see, that isn’t ideal and neither is this deeply negative MACD. With earnings season just about done, what is the bullish catalyst that will carry us?

Today’s Unusual Options Activity & What Stood Out

Back to the importance of all this data you’re being fed before today’s table. You see my book and I don’t take every trade and very rarely do mess with bearish positioning, but people always ask me for good shorts. Well, if you paid attention, look at W, it was down 25% today. I looked at what I posted in the past month on it and it has been nothing but put buys. The smart money was definitely on this one. I admittedly do not pay enough attention to short trades, but this was a big winner.