3-1-16 Before the Open

[Mike]

Everything on my short watchlist has set up or have nearly set up at a possible short sale point. Is this a sign? It has been frustrating to see stocks on the short watchlist rally stronger than stocks I am watching on the long side. However, it appears that we have been rallying into resistance. Here are a few charts, the comments are self-describing the possible set up. There is a common theme of a stock that has topped and is well into a downside move with a rally into resistance. Every one of these stocks trades more than 1 million shares per day on average. This is a requirement for my trading as thin stocks can jump too quickly in a short squeeze. We need Mr. Market to decide what to do, as these stocks could continue to rally if the market does. It appears the market is up in pre-opening trade this morning.

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[Pascal]

Thank you Mike.

Indeed, as far as the forces that move the markets originate from US/Japan and US/Europe rate differentials, the flow of money will be detected by algos and these will push Future and large ETFs accordingly.

We will need real "guts" to bet on technical analysis based on individual stocks patterns.




Pascal

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[Mike]

Thanks, Pascal,

With the futures up this morning, I feared that these short setups would get overtaken by events. So, I waited. This is how this market has been playing out. Still, I had hoped that with so many short-side setups that we might get something going.

EBIX, TTWO, G, EW, XRS, HA, MLNX and STMP are working on the long side. It takes courage to be on either side of this market.