The Shakedown 12/16/18


Surgeon's Market

Boy, oh boy, is it ugly out there! Bears cemented their control in the market this week capped off with an ugly distribution day Friday as S&P 500 fell 1.9% with Nasdaq dropping 2.3% as volume rose across the major indexes, bringing SPY's December count to -5.8%. We are continuously seeing us gap up in the morning, only to find major weakness in the afternoon. Trades from both the long and short side have been difficult. You have to be a surgeon out there to be killing this market. I went fully cash Friday and it felt great to not have any overnight risk in this market. I plan on being pretty selective going forward.

Cash is definitely the best position in these conditions, there are still quick trades you can take of course. It is wise to take most of your position off the table at 3:1 risk/reward in this climate, with selectivity being the name of the game. I doubt I'll look to take too many overnight positions until we start to see some better action out of the market.

(Click ^ for detailed look)

(Click ^ for detailed look)

A Few Bear Flags


This EVRG has held up like a champ in this market turmoil. I love the fact it's an energy name which are often safe havens during risk-off markets like the current climate we're in. We have been watching this one a while hoping we got a nice daily flag below $61 resistance and we've gotten just that.
Through $61 is the spot.
Trigger: $61
Stop: $59.89
Target: $64-66+

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