• Comments for September 9, 2021

    The small pullback that started at the end of last week continued yesterday, but also overnight.





    It is interesting to note that the Cumulative Tick was much more bearish than the 20DMF, a clear sign that there is fear regarding risky/illiquid investments.





    Hence the small caps underperforming for now.



    This is also probably why we see money moving back into defensive sectors such as XLU/XLRE.





    On the other hand, the ratio of sectors that are in a short wait mode is still well above the 50%-40% short levels.



    Conclusions:

    This down move could continue for one or maximum two days, but next week is an options expiration week, which has a positive bias.

    The list of trade ideas for today is below.



    As announced a few months ago, starting this September, I will limit my daily comments to 2 or 3 comments per week, except if there are some big markets move.