The clustering of so many Sell Signals generated at Friday's close is a heads-up that the stock market has resumed its downtrend. What I have been labeling a counter-trend rally, the, "dead cat bounce," is over. The major market averages will soon take out the October 29th lows, and then the Feb 9th lows. From that level, nothing but air into the January-February 2016 lows. Beyond there, the 2009 - 2011 lows loom. But let's take this one step at a time. The first level that have to fall is the October 29th lows, 24,122 in the DJIA, and 2,603 in the S&P 500.
The chart above shows the close to 10 year bull market from early March, 2009. Whereas it's possible to retrace that entire bull market, it is also possible that this bear will fall to one of the Fibonacci retracement levels shown on the right side of the chart. The Wave 4 low of Feb 2016 is right at the 50% Fibonacci level and a natural stopping point IF the decline is just a "pause" in a decades long and ongoing bull market. In other words, a 1,000 point drop in the S&P (-35%) is a best case scenario if my bearish analysis is even close to correct.
New Trading Signals
Below are 16 new Intermediate Term Sell Signals, along with 3 Bearish ETF's that generated Buy Signals at Friday's close. There are also numerous Sells still open in the trades table, all expiring in Nov/Dec. Remember that most all individual stocks move in the same direction of the primary trend, making trading indices (QQQ-IWM- SPY) an easy and manageable way initiate, and/or bolster, a leveraged Short position on the market.
ETF's (All Sell Signals at Friday's Close)
Biotechs: (IBB): Jan $105p
Financials: (XLF): Jan $28p
Russell 2000 (IWM): Dec $150p
Nasdaq 100 (QQQ): Dec $170p
S&P 500 (SPY): Dec $275p
VXX (Buy Signal): Nov $34c
Inverse-Leveraged ETF's ( All Buy Signals at Friday's Close)
TZA (Russell 2000 Bear Fund)
QID (Nasdaq 100 Bear Fund)
SDS (S&P 500 Bear Fund)
Individual Stocks (All Sells at Friday's Close)
Abode (ABDE): Dec $240p
Autodesk (ADSK): Dec $135p
Agilent (A) : Jan $65p
Amgen (AMGN): Jan $190p
Citigroup (C): Jan $65p
MMM: Dec $200p
MSFT: Jan $105p
NFLX: Dec $290p
Visa (V): Jan $140p
X: Jan $27p
S&P 500 (SPX)
The above chart highlights an SPX Sell Signal, along with its 2,774 level, the low print for Wednesday's run-away post election rally, Wednesday's lows were broken on a closing basis Friday by the Nasdaq, Russell 2000 and NYSE. The S&P broke through during the day, but closed back above at the close. The Dow stayed above its level, 25,765 all session. When the S&P and Dow finally close below their Wednesday's lows, look for acceleration down.
Friday's Premium Trade Alerts
Premium Trading Service
I sent out a couple of intraday Alerts to the Short-Term Premium service on Friday as the market was tanking with key short-term levels and a recommended strategy. Those two Alerts are set out below.
The Premium Service provides intraday real time commentary on market conditions and the occasional non-system trade related to those conditions. The cost is to $99/mo and includes the Standard Service. This link will take you to your account page at Blue Line and you can upgrade yourself: Premium Upgrade (If you haven't created a login to your billing profile yet, you can request a link to set your password).
Alternatively, simply email us below we will upgrade your account for you:
Friday (Nov 9th) Intra-Day Alerts
Just After Friday's Open:
"The S&P is sitting right on the 2774 horizontal line going through Wednesday's low as the DJIA is down 250 points. QQQ and IWM have already broken through their respective Wednesday lows. When all three have broken down below those lows, the scenario is in place for acceleration down. See the morning Premium Alert for Short-Term trading ideas.
"Intermediate Term (Standard Service) has the following stocks in, "Sell Pending Mode." They cannot be confirmed until today's close.
"Agilent (A), Citigroup (C), IWM, MMM, NSFT, NFLX, QQQ, SPY, VXX, X, XLF."
CURRENT [STANDARD SERVICE] TRADE TABLE