This was a good pretext to unload equities.
However, the market is not broken. If the 20MA on the SP500 crosses above the 50MA, the 20DMF will issue a buy signal today in a "confirmed uptrend." Add to this a positive Cumulative Tick.
Such signals have led to weak, but still slightly positive, returns.
I am now 80% short and 10% long.
The market changers will come at the close of today, when MSFT, GOOGL and AMZN announce earnings.
We can see that the NQ Futures investors are starting to get nervous, but that does not predict poor reports. To the contrary, I would be a willing buyer of tech stocks (QQQ) on weakness today.
XLE and XME are still very weak.
Conclusions:
Biotech could still be volatile today, but I believe that the opportunity will be to buy QQQ/QLD/XLK for a bounce tomorrow.
