The bearish J-hook pattern remains the predominant pattern in the market indexes. Any long positions remaining in the portfolio should have compelling reasons to stay long. Short positions should now be the predominant trading strategy. The long positions should be oriented to the gold sector.
Today’s positive trading, confirming the bullish Harami of yesterday in the Dow and the S&P 500, unless experiencing strong selling before the end of the day, is demonstrating that the trading channel is a very slow uptrend bobbing along the T-line. Fortunately, numerous sectors such as the oil sector and the gold sector have been working extremely well during the sideways mode. Those are obviously the sectors be trading long. Numerous stocks have been trading absolutely sideways for the past three weeks. Obviously stay long in the strong sectors and short in the week sectors, both should still be in the portfolio.