Interesting how today the tech sector was the strongest sector and did not have the same sell of as the rest of the market. Tech has been pulling back as the rest of the market has been making new highs. Seems to me the money is going back into tech as it has been the bigger mover and has been leading the market higher. This is a safe trade as most tech haven been hit like the banks or energy stocks.
Today we saw the financials sell off as with energy, two sectors that lead this market down, and have been leading it back up. This is one of the first days a weakness in these sectors in a while, as people are taking profits and letting the stocks breathe. It seems as if the institutions have st oped buying as the volume was not as high as it has been for a Monday in this recent rally off the lows. Seeing the volume more as trading volume than buying from institutions. I am looking for the market to move lower in the coming weeks as we can not rally forever and stocks are coming be be over priced. As i say that I am holding cash with a small short posistion. If i take any longs I will have a tight stop as this market can turn at any moment. Right now I am watching GLD for the price of gold to see if money is going back into a safer trade, as it has been with rising volume on the GLD, seeing gold only down around $80 off the highs in march. Looking for GLD to close above 90.5 to confirm a up turn in the sector for the short term. As this happens I think that we will see all markets pull back, and will hold a small short in SDS, and ready to catch a bounce. Right now i think the only trades that should be place should be short term day trades and scalps to keep risk down. Will be watching the short efts dxd,sds, qid, dig and skf for the down side trade. Will be come more interested in these if the market breaks 905 and 900.
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