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... jaywiz10534

HI Red
same as you I have remained short
and added more yesterday late afternoon
Elliotters giving the bull the benefit if the doubt, even tho they have pictured both directions, they seem to be more bullish than not
Jay

... Red Dragon Leo

You still should be ok, as we may have another sideways day tomorrow while the dollar tries to break overhead resistance. Once that happens… another short squeeze will occur, and the market will get hammered!

Red

... Red Dragon Leo

Agreed…

It has been dumb money here lately, and yes we need to break the 1100 level. I believe it will come… and come like a thief in the night. If you aren't already short you will miss out, just like they did last week.

Thanks for stopping by,
Red

... jzzz

Should have seen this earlier. This afternoon, while worried about spx climbing higher to the level of 1121 (or talk of 1045+ ), I sold off all my shorts (amzn shorts, faz, and etc). Now 100% cash.
Make all the senses. Seems to support your view, ES just went down.

... clutchshorter

Nice post Red! I agree with you that a lot of the sectors have been weak for some time now especially financials and tech. Most shorts think this is a bear trap similar to late October but this slow weakness may be what we need to push this tape lower. In late October the markets sold off within a perid of 4-5 days and everyone started jumping on the short side only to burned. The VIX jumped from low 20s to 30s in one day. It's a little different now especiallly with the sideways pattern. I believe mutual funds and institutions are slowly scaling out of their positions these last few weeks. This has been met with some buying from dumb money. Dowards momentum is slowly building. Participation to the upside is waning. The SPX may trade sideways between 1080 and 1110 for the next few weeks but at some point this should accelerate hard and fast (sooner the better). We need to really break below 1100 support first.

... Red Dragon Leo

Turbo Tim,

Be sure to watch that video, as it really gives you an idea where we are heading in the next year or so.

Red

... Turbo Tim

Nice video link from Ron Walker's site

... Red Dragon Leo

If you have reading for awhile you'll notice that the forecast are pretty accurate (not perfect of course), but you will also notice that I too struggle to follow my own forecasts.

Many times the forecast was right, but I got out too early or in too early. Always something to cause me to not follow the forecasts. Usually it's my own emotions standing in my way. It's tough to trade for a living. You really have too learn how to deal with the emotions first.

Anyway, good luck and please continue to post… even if you have nothing to say about the market. You can always post some juicy dirt on some bozo in the government… LOL!

Red

... jzzz

Hi, Red,
Have always been looking for your articles when I am not so sure whether the
positions I took will work for me or against me. Although I do not post
since I do not have much to contribute other than saying that I found that I
seem to be on your side more often than not.
Many thanks for sharing your great work.

Jzzz

... Red Dragon Leo

Thanks Jzzz…

Just trying to fix some of the minor technical issues tonight, so please overlook any picture problems or errors while I play with it.

Red