Tuesday's Update: Sick, Sick, Sick


The market is sending a clear and convincing message that the preferred direction is down. It was up 300 points in the first 30 minutes and then lost it all with two hours to go in the session and was hard down going into the close. I run through 30 charts multiple times each day, looking for any signals that are flagged and what I am seeing is sick, sick, sick price action almost across the board. It's important to have a short-side presence in this kind of market.

The recommendations from last Friday's special alert still hold, while we wait for the mechanical system to trigger its own brand of market timing signals:

IWM: Nov $147 put of Dec $145 put
EEM: Nov $40 put or Dec $38 put
QQQ: Nov $167 Put or Dec $165 put
VXX: Nov $42 calls                                                                                                      
These are all based upon shorter-term time frames which going forward and as we announced this weekend, will have their own home in the new Short-Term Premium Trading Service.  For now, these positions should be considered actionable for all subscribers who are looking for more exposure on the short side.