Let the market tell you what the market is doing! This sage advice from the Japanese rice traders is relevant. Today’s job report indicated 11.2 million jobs available, not being filled. Consumer confidence much stronger than expected. That would seem like a bullish set of indicators. And the market started dropping. Why? Because the next analysis might be the feds having to move interest rates up faster and higher the slow things down. Obviously, stay predominately short. Any long positions showing doubt should probably be closed.
August 31st Daily Market Comments
Beware the bounce! It is not unusual to see an early morning bounce to the upside in a downtrend. The final criteria is the T line. Assume the market downtrend remains in progress as long as there is not a candlestick reversal signal and a close above the T line. Stay predominately short.