Before the afternoon weakness appear on the general market, I however had detected a negative divergence in IBB that was probably not originating from the oscillation aspect of the MF indicator. Hence the decision to short IBB.
Even though the general market was weaker, I did not short more as I still believe that there is a good chance that we bounce, because this selling pattern looks controlled.
As a matter of fact, pullbacks just below the 5MA on the S&P500 have offered good buying opportunities in the past 150 days.
The 20 days returns calculation point to an exit target close to $2500. This could occur in two cases: either the Fed does not raise rates or the new administration stuns the investors' world by disclosing an unexpected tax package.
The trade ideas for today are below