Wednesday, October 3, 2012

And back to cash...

While the JTS will remain long, the CCI is shorting on the close.  This neutral set-up puts the JT Comp (and myself) back to all cash on the close.  Interestingly, it's not an average CCI short signal in that the indexes are not overbought, but rather this continued weakness is hinting that a sizable drop is becoming more likely.  The lack of a meaningful bounce at these levels is putting the CCI in defensive mode.  Careful shorting here however as it may be a day or two early yet again.  I will not be shorting. Liquidity remains too strong and the trend is still up for the most part.  We may simply be consolidating here before the next move higher.  I will not get too excited about shorting until the JTS fires off a signal as well.

Take care!
J


1 comment:

  1. Starting to peel off my longs up here, J... YM up nicely on the debates... Kinda figured we'd do the ole "buy the mystery, sell the history" mantra ... so, expecting the mkts to give us a good short entry now that the debate is over.

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