Hey Market Pilot,
When the market catches a trend with energy, it can take a while for things to shift. Especially if you missed the move and have to wait for the next train to arrive.
This is mostly the situation I find myself in with the markets being at all-time highs. Taking anything on the long side would be very risky at this point since most stocks follow the indexes and the next direction I am looking for is down. Therefore I want to be protected on the long side, and possibly have some short exposure.
According to my indicators and tools, the S&P 500 (SPY) and Nasdaq (QQQ) are extremely overbought, only having just shown signs of upward exhaustion on Wednesday. If you are a ‘long’ only trader, hopefully, you have been taking profits or exiting altogether. This also means you most likely will have to wait for the markets to cycle down and give you the next long opportunity.
Let’s see if the market pulls back nicely over the next few weeks and gives us a great place to buy going into the end of the year.
Your Profit Pilot, TG