Closed out Shorts Today

I just closed out the short position I had.  I don’t like the hesitant nature of the market right now and the lack of immediate follow through.  Plus there is a fed gathering the next 2 days and something is going to come out of that meeting that may bounce the market.

Another reason I am closing out shorts is a possible MACD histogram buy signal in the Russell 2000 right now.  It is as of right now unconfirmed, but I would rather not take the late risk of it being confirmed tomorrow in the AM.  This could be some type of short term swing low right now.  There are also lots of hammer reversals in a few other indices that look pretty convincing.

I may reload fully short if we by chance manage to gap down tomorrow or get immediate bearish follow through.  But right now this MACD histogram bullish divergence and also potential confirmed histogram buy signal is scaring me away.

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The previous post I did about sentiment and Glenn Beck and others talking about crash and Hindenberg Omen is a very bad contrary sign for the market and is only an anecdotal factor.  Still it could carry some weight.

I will be happy to reload short tomorrow on a nasty gap down opening or immediate follow through but I would rather be cautious right now for a possible bounce.

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3 comments on “Closed out Shorts Today
  1. Geoff says:

    Tom

    thanks for posting. i am not “buying” the rally. i think we go lower

  2. Max says:

    Hey Tom,

    CNBC bearish talk might be a contrary sign, but only in the long run. In the short, my take on it is ‘they’ are gonna let (or even make) it fall.

    Meanwhile Hindenburg Omen may work as a self-fulfilling prophecy.

  3. Tom says:

    Could be.. but even if I am correct that we turn short term bullish, there is still a larger context pattern to be aware of.. i will write about it and post it in a few…

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