Last week I started out with 40% exposure to the market net long. I got stopped out from the word GO! Luckily the Shorts outperformed the Longs and the pain was minimal. By the end of the week I was up a bit as I reduced longs and added to shorts. Friday we got an extremely weak bounce that failed as a lot of charts were hitting support areas. This is a big tell, tell sign of just how bad things are.
Looking at the week ahead SPY gets a Neutral rating. Despite the fact we are in extreme oversold territory. We are deep inside the Chop area where violent moves in both directions are typical. Newbie traders Should definitely be in all CASH! There is no glory in losing your hard earned money guessing. Remember Bottom Fishing is a FOOLS game!
I am entering the week with 26% of portfolio exposure Net Short. I will continue to hold short names like CPA, ALK, SLV, GLD, APKT, LULU, DBA, AMED, IT etc. While holding on to longs like AAPL, BA, WDC POT, ISRG, WFM, CMG, WCN etc. I will look to buy some SPY down around the 114 area for a bounce should wee get there and Short around the 122 area.