Good evening. It appears the broader market is on the verge of a much needed healthy pullback, but we need to see follow through in the coming days to take advantage it. The market left us hanging today as the end of Q3 window dressing prevented a larger decline. The economic calendar is stacked tomorrow so this will likely create a volatile trading session which could cause a break higher or lower. Regardless of what happens, the odds of a correction (which I think will get bought) at this point far outweigh any significant breakouts. Even if we break higher tomorrow I think the spike will be short lived and will provide better opportunities to initiate short positions at a better price. In light of the economic data due out tomorrow, I do not have new plays to release tonight. We have positions on both sides of the market to take advantage of a bigger move. Please email me with any questions/comments.
QQQQ - I like short positions in the NASDAQ 100 ETF - QQQQ. I believe there will be a rotation out of larger cap stocks into smaller cap stocks as Q4 takes shape. The immediate target is the $47 area which is about -4% lower than current levels.