Well we started off the year with a SHORT Swing Trading bonanza now didnt we?
The DOW JONES and S&P close for trading and end the first week of 2016 DOWN TRIPLE DIGITS.
Right out of the gate on Monday (4th) morning we knew we were in for a wild ride this week.
The big GAP DOWN in the market was actually follow thorugh from the down move that started last week.
That being said we were already on HIGH ALERT for SHORT TRADES since the major indicies were all breaking below thier 50 day moving averages.
As we looked around at the different sectors we saw that most of the charts we showing continuation moves to the downside.
The semicondictors ($SMH), Technolgy ($XLK), Homebuilders ($XHB), and Financials ($XLF) all started their moves last week so getting short this week would have been chasing the market.
Energy and Oil ($XLE, $OIH) was a bit of an expeption and actually turned into a short swing trade signals on Wednesday.
Just in case you arent yet comfortable shorting stocks yet then #SCO was your inverse ETF to take a long trade on.
On a related note both $APA and $APC were short trading setups as well.
On the flip side the GOLD ETF's ($GDX $GLD $NUGT) showed signs of life as both ETF's broke up through their 50 day moving avergages.
As far as individual stocks go Ryder ($R) is a good example of a stock that offered a good short trading setup as the market traded lower on Wednesday.
As we move into next week we arent expecting much more a down move before the retrace starts.
Could we continue to sell off next week?
Of course. Anything COULD happen.
But if it does we wont have much to trade since most of the moves are extended at this point.
We will wait for the retrace and then reevaluate from there.
Until next week…Good trading to YOU!