My bearish watch list for the week:
How many people were anticipating a UK Snap Election prior to today? Yeah, nobody. It is quite amazing how many things, of late, the market can find to freak out about. Brexit was last year, it is happening! Apparently the algos have yet to get over it. They still have those settings in place to flip out about anything coming across the news wire related to Brexit, and that is where we find ourselves at right now.
Dip buying doesn’t seem to be a relic of the past, but it sure does seem to be having a hard time waking up in the afternoon these days. But as you saw yesterday, it takes one day to wipe out days worth of progress by the bears. And in many cases the last 30 minutes of trading.
Now today, the bears are trying to take back what they lost yesterday. So far they are succeeding at it, but in this low volume trading environment, heavily shorting this market opens you up to an end of day short squeeze that simply isn’t worth it.
Check out the list of short setups below, just be careful at this juncture about getting too short too fast.
