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Short Setups If Things Start To Get Serious
The market is down today but for how long?
To say this is another top in the market and now there is going to be a retest or break of the February lows is insanely premature. Heck, no one can even say for certain that this market is going to even be willing to close lower on the day.
At this point, unless we see some form of panic selling or a major technical break on the daily, viewing this sell-off as anything more than a near-term pullback is highly irresponsible as a trader.
And for those comparing this year to 2008, remember that 2008 saw the markets rally strong from March through May. So lets keep the current conditions in perspective and know that if this market is going to be, indeed, a bearish year, it isn’t necessarily going to be trading straight down.
So, with this sell-off have minimal expectations for now, unless it decides to show you otherwise.
Below you’ll see that I’ve got a number of short positions that I am currently watching and nearly all of them is seeing some hard run into a major resistance level. But in order for that to be playable, we are going to need to see more than just a two day pullback that bounces off of the 10-day moving average (speaking of $SPX/$SPY), which is all we have gotten now for almost the better part of a month.
Check out my short setups:
Ryan Mallory is the co-founder of SharePlanner Inc, a financial website devoted to Day-Trading, Swing-Trading (both long & short) and exchange-traded funds. Ryan makes a strong emphasis on risk mitigation strategies, trading transparency, and trader education – not to mention a great set of stock screens as well.
Be Sure to Check out Ryan’s Site at Shareplanner.com
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