Monday, April 17th, 2017

Here comes the Death Cross

Market still remains very tricky. Any attempts to trade to the long side is getting met by defeat after defeat for bulls. Market gapped opened and SPX was up to 1042 in first hour of trading. Many people bought into it as they came back from a 3 day weekend. That was a mistake. It crumbled. SPX sold off without staying at 1042 and has now closed the gap.

This market is behaving like a BEAR market of 2008. The 50 day moving average is now crossing the 200 day moving average from above. Its called a DEATH CROSS sell signal. When that happens the direction of market changes and to the down side. This is bear territory and the bottom is nowhere to be found.

2010-07-06_SPX

The Finance Reform Bill is stalling in the Senate and until that is signed and done with the market is not to be happy about it. There is a constant battle going on behind the scenes. Everyone trying to kill the reform and maintain status quo. Wall Street is fighting back with both hands and with all the might it has spending huge amounts of money on lobbyists. So trading is at best very risky, unless you can short into an oversold market and incur losses, that way as it bounces like this morning.

Many services that deal with options and stock services have incurred huge losses this month. There is a particular service which deals with Iron condors month after without being in tune with markets, and it has suffered one of the most devastating losses that I can see. Their NDX, RUT positions have gone down with max losses and have to be closed.

We are doing much better. Taking no position is a position.

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