Red Flags

Breakouts are failing, and breakdowns are working. In environments like this I tend to take a step back, and reassess how I intend to deploy capital moving forward. I can either sit on my hands and do nothing, or look to play some downside. And I will say, I’ve been seeing tons of charts that look very appealing on the short side. Here’s some examples of setups I’m looking for.

Inverting my charts has helped me remove any bullish bias I have, and strictly look at price behavior only.

When bullish groups roll over after months of consolidation, that makes me hesitant to play anything on the long side until I see some strength. And right now, I’m seeing the exact opposite.

With these two charts being failed breakouts, there has been more “selling the rip” versus the typical “buy the dip” bull market mindset.

How these next charts play out will either be further confirmation for bears, or a sliver of hope for bulls. If price breaks below, the bears are officially in control. If price can manage to hold here, the bulls still have a chance. Your line in the sand is set, its just up to the market now.

What do you think about all of this? Feel free to reach out and let me know your thoughts. As always, thanks for reading and blessings to all!

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