I am at it again, naughty and fading the market. Take heed for those who wisely use me as a contrarian indicator! Unlike the past, I won't be aggressively shorting. Got an initial position in SPXU. 134 will be the next add. Final add at the 135.76 major resistance. Stop loss on break of 50 day MA.
The sell signal is still on. SPY is currently backtesting the 50 MA on the 60 minute chart. VXX is below 20 again. Buydonthold.com maintains its sell signal as well. And I heard the chartist.com went 100% cash yesterday. Unfortunately, Dr. Fly is going all out with longs upon surviving the carnage without being shaken out. And TraderFlorida has exited all of his short positions and sitting on 100% cash.
The market is due for a bounce for sure, but the thesis is that this is a bear market bounce and the low will be retested. As such, I will avoid counter trend plays.