Strategic Stock Trade
SST Email For 2/7/2019
The markets traded lower on Wednesday, barely, as the SPY traded its lowest volume since 11/23/18.
I still think the markets are setting up for something nasty to happen on the downside.
We cannot continue to drift higher on air without a downside surprise occurring.
Lets look at the SST Charts: The monthly NH / NL chart continues bullish as the other 3 time frames that we track are having a difficult time breaking out to the upside.
Please take a look at the Weekly NH / NL chart that is attached.
It continues to make lower highs on a year-over-year basis. That is significant for our strategic decision making.
In addition, the S&P 500 has not made a new high since the December 2018 highs. We continue to make lower highs even though the market has ramped higher over the past month.
Another significant observation.
I added to mu UVXY long position today. With a red open tomorrow, the UVXY will be extremely oversold on the daily time frame. I will continue to add. Always leave yourself ammunition so that you can add to positions as warranted.
I sold my JNUG and covered my NFLX from yesterday. They were only trades off the hourly time frame.
The SST Daily Index Numbers Closed Trading As Follows:
NAZ = 91.64
DJIA = 96.99
IWM = 95.7
S&P = 93.05