Switching BOT Neutral

I am switching to BOT Neutral now until I get a more clear picture about the true direction of this market.  I can make a 1 month bullish case for the market, but I can also make a 1 month bearish case.  Plus tomorrow is option expiration and next week the much awaited Fed meeting.

The market should get some sort of more duration sustained type move after the Fed meeting next week.  It could be either up or down depending on how much or little the market likes what is being offered.

It just seems to risky making any strong stance before option expiration and the result of next week.

So BOT Neutral for now and ready to switch either back to BOT Long or BOT Short maybe by end of next week…

P.S. The scary part of today’s rally within the recent range on the sp500 is that it still has the potential for a major bearish resolution.  The QQQ is confusing matters quite a bit for me lately.

Posted in BOT Neutral
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7 comments on “Switching BOT Neutral
  1. JR says:

    I follow closely 31 stocks. Today all but one LVS have deteriorating charts!
    Selling all but LVS and going neutral. These charts do not bode well for the bulls!

  2. Tom says:

    Yes there are a lot of ugly charts out there… but there are some pretty ones too for example AAPL and AMZN.

    If look at the monthly charts of AAPL and AMZN it would seem like nothing is wrong with the world…

    It is just a very messy trading environment and now there is all sorts of overhead resistance of people who want to get out on a rally..

    I want to know when and where the next 3 to 1 high probability trade setup exists..

  3. JR says:

    So do I. I see a lot of internal deterioration in spite of the action in the major averages. Not good!
    I really think it is time to sit back and just watch at least for a few days.

  4. KT says:

    Stock Trader’s Almanac has Friday labeled bullish. However, it’s hard to believe that will happen after four up days. I think the days following triple witching in September are usually down.

    We seem to have been following Europe’s lead this week in the stock market.

    I have learned over the last month not to get too far ahead with my ideas on what the market is going to do. I am still learning this lesson!

    Even more investors are bearish now … according to that index of investors.

  5. ed says:

    Keep it simple. Did anybody read my last 3 or 4 posts?
    Been long since Monday and will exit tomorrow, then take some shorts for next week

  6. KT says:

    Ed,

    I went back and read your posts. You weren’t loony. You were right about this week’s action. I wonder why a full moon often correlates with up days in the stock market? I also saw that you said you think next week will be the bear week of the year. Do you think it starts Monday?

  7. ed says:

    KT

    It might be somewhat delayed until we get closer to the New moon on the 27th, but I don’t want to give that too much weight

    I did lighten up on my longs at the close and took a few shorts but I am not net short as I had planned, for better or worse

    We’ll see what happens this weekend before I commit to more shorts

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