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11-05-2017 Market Update

Internals are showing cracks. There are negative divergences in practically all indicators that I use to assess market microstructure.

$BPNYA, $NYA50R, $NYA200R, $NYAD are not confirming recent highs. While these divergences do not necessarily portend imminent reversal for broad indices, they are warning signals and I’ve been closing most of my long call positions over the past several weeks. Those closures have been premature and ill-timed as hindsight is 20/20, but I feel comfortable carrying a large cash exposure at this time.

Personal trading account has experienced a 20% drawdown from its late October peak but is up nearly 200% YTD.