Cry Uncle?

 

With my Dead Cat Bounce blog from last weekend I seem to have been a little too bearish. I wanted to send out this follow-up, which is an excerpt from yesterday's Daily Update from our (very reasonably priced) Blue Line Trading Service. In summary, the intermediate term downtrend is still in tact. Bears are falling off the trees like autumn leaves in Vermont, and when enough of them are on the ground and swept up into piles of burning colors, the next leg down will begin. 

Below is a current chart of the S&P 500 which reached up and closed right on its Fibonacci 61.8% retracement level. Look at the chart, and in no more than 3 seconds determine if the trend is up and down. Not the trend from the last five days, but the trend from the last five weeks.

 

And below is a chart of Zillow (Z), which was among several Sell Signals that were generated Tuesday: 

The the lower right bar represents a 200% gain on the recommended Dec $40 put. The other Sell recommendations, well let's say they were less than stellar. But with 44 days left until December expiration, let's not close the deal on those quite yet. Easy up, easy down;  the nature of news-inspired gaps.

In any case, I just wanted to follow-up on my bearishness, it's still alive and well. 

My latest YouTube Video

 


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