Update: Targets Hit
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I discussed in earlier posts why i am bearish on equities, hinting the federal reserve easy liquidity withdrawal and many technical conditions. If we just ignore all the warning signals on momentum indicators and the major bearish divergence on breadth indicators. One more major warning signal that cant be ignored IMHO is the breakdown of high yield junk bonds, which have been always a reliable indicator for stock market direction.
JNK has broken below its long term trend line from 2011, in addition to successfully recording a new lower low. Add to that the major bearish divergence on Breadth, stocks above 200-days SMA.
I am shorting this market, looking for a meaty correction.
Best of Luck , join me at twitter.com/thefxchannel
Also at my Facebook page www.thefxchannel.com
My best regards,
Technician
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Trading Criteria:
1. Trades are taken in two units
2. First unit would be closed at first target
3. Stop loss is then moved to break-even
4. Second unit would be closed at second target
5. Note that If 90 percent of first target is reached without triggering entry, trade is cancelled
6. Remember: Losing is a main part of the game
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I discussed in earlier posts why i am bearish on equities, hinting the federal reserve easy liquidity withdrawal and many technical conditions. If we just ignore all the warning signals on momentum indicators and the major bearish divergence on breadth indicators. One more major warning signal that cant be ignored IMHO is the breakdown of high yield junk bonds, which have been always a reliable indicator for stock market direction.
JNK has broken below its long term trend line from 2011, in addition to successfully recording a new lower low. Add to that the major bearish divergence on Breadth, stocks above 200-days SMA.
I am shorting this market, looking for a meaty correction.
Best of Luck , join me at twitter.com/thefxchannel
Also at my Facebook page www.thefxchannel.com
My best regards,
Technician
==================================================================
Trading Criteria:
1. Trades are taken in two units
2. First unit would be closed at first target
3. Stop loss is then moved to break-even
4. Second unit would be closed at second target
5. Note that If 90 percent of first target is reached without triggering entry, trade is cancelled
6. Remember: Losing is a main part of the game
