You can still see where the bears really haven’t bee squeezed yet, despite Friday’s rally, and today’s attempt at one, though right now it is still trading flat on the day.
Big leaders are struggling, and if this market is going to sustain a bounce and do it in a convincing fashion, it will need its leaders, like Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL) (GOOG) and Nvidia (NVDA).
Without the majority of these stocks rallying with a market bounce, the bounce will, itself, falter. I’ve got two positions in play, one is doing jack-squat, while the other has some profits to show from Friday’s rally.
But with as much as we sold off the previous two weeks, I am expecting more from these plays. If that doesn’t happen, I could see a scenario similar to February 6th playout, where the market rallied, and then tanked for another three days before finally squeezing the shorts.
Right now, don’t get super long on this market. I would also wait for that strong dead cat bounce, before even attempting a short on this market. The market is extremely oversold, and it makes to sense to short into it, when you know there is a bounce right around the corner.
So yes, I’ve got two long positions I am working with right now, and I could easily close out both of them if the market starts to act up this afternoon. I have no desire to be a hero in this market, and will only take what the market is willing to give.
Oh, and use them stops, people!
