A large bearish left/right combo on Monday, closing the indexes below the T-line, confirmed the obvious selling. Further confirmation is demonstrated by the fact that the T-line is acting as the resistance level. The 50 day moving average appears to be the likely target, indicating more downside but that could be achieved Today. Short positions require the same strategy, have safety stops in place. Because there is always the potential of a positive announcement, vaccines, stimulus package, big earnings that could blast the market back up again. The portfolio bias should be more oriented to the short side.
October 22nd Daily Market Comments
A large bearish left/right combo on Monday, closing the indexes below the T-line, confirmed the obvious selling. Further confirmation is demonstrated by the fact that the T-line is acting as the resistance level. The 50 day moving average appears to be the likely target, indicating more downside but that could be achieved Today. Short positions require the same strategy, have safety stops in place. Because there is always the potential of a positive announcement, vaccines, stimulus package, big earnings that could blast the market back up again. The portfolio bias should be more oriented to the short side.