Later on, XLF however pulled back on a negative money flow. I thus decided to sell the position at breakeven. Positions that are entered on a strong EV or MF pattern should not be left unattended early in the trade, because the entry conditions could quickly change, which seemed the case form XLF. In general large caps had a bounce, but it felt weak all over the day, probably because of uncertainty around political deal making behind the doors.
We can see that the CVS/BMY/HRL positions look fine here. HRL/BMY are bouncing back up but on a very weak EV pattern, which points to more selling down the road... if the general market weakens.
The CVS stock price weakened yesterday, but the stock attracted some money. Anyway, positions are protected by stops.
The IBB pattern was the most interesting: we can see that many traders bought heavily the IBB ETF itself, but the Money Flow calculate don all the components continued to be weak. This points to speculation or index investing hoping for a bounce while large investors are much more bearish in regards to individual stocks.
The portfolio is still 80% short. Note that BMY/CVS and IBB are in the health sector.
As written in the daily comment: "If the Obamacre repeal law passes, this could be negative for the sector as less money will be made available to cover health care costs. However, if this bill does not pass, the general market will be weaker, pulling the health care sector lower with it. This analysis might be simplistic, but I need to hang my hat on something... even if it is only the thin air or a narrative."
The Rollon returns are shown below.
The trade ideas for today are below.