Position Update, Charts

After today's broad-based decline, I get the sense we are at or near an intermediate-term top. At the same time, I do not expect the bulls to simply roll over here. Looking at some index charts, we can see that while today's action was undeniably bearish, price has support nearby. Volume was not particularly high today.

- SPY broke down out of a rising wedge on a very slight increase in volume. The 200 day moving average is not far below.



- QQQQ is sitting on support.



The market is offering some good charts on both the long and short side. I continue to focus more on swing trades with loose stops, which has allowed me to keep most of my short positions through the recent strength. I added positions on both the long and short side today. My stops on the long positions are tighter than those on the shorts.

Long: GNK, SNCR, CTRP, GA, ILMN, LPNT, HK, GERN, STSI, ESV, ANV, TBSI, APWR, FREE

Short: RTH, BMS, EAT, AZO, SYT, CBRL, RSH, DLTR, ANSS, DECK, MOS, FL, MET, FWLT, DB, CS, ADS, CRMT, CEDC, GIL, ACE, SLM, AN

Here are some charts:

LONG

- GNK



- CTRP



- STSI



- ILMN



- LPNT



- APWR



SHORT

- RTH



- EAT



- MOS



- FL



- CRMT



Quantifiable Edges has a post up analyzing past market performance from an extremely overbought condition (as it is now, although less so after today's action). The conclusion: extreme overbought conditions do not necessarily result in steep selloffs in the same way extreme oversold conditions tend to result in powerful short squeezes. I recently discovered this blog, and have found it to be tremendously educational.