The day started off rocky despite a positive jobless claim figure at 8:30pm. Traders pushed the market to its high of the day by midday causing many to think the recent sell off was all over. However, the market continues to be heavy with plenty of stocks continuing to break down killing any possibility of a sustainable rally. Today is a perfect example of trying to catch a “bottom” and only catch disappointment. Washington continues to be a mess, but there is something bigger happening in the market. We are in a correction and it is best to stay on the sidelines until market conditions improve.
It is really obvious we are breaking down and it may be a bit obvious to short here, but it is clear we have plenty of stocks breaking down. Rallies will more than likely be sold into. A debt ceiling compromise may bring on a rally, it would be an opportunity to look for weak stocks.
DO NOT BE A HERO
Stay patient and disciplined here, do not over trade this market.