The UAE has saved the planet this weekend, coming to the aid of a troubled Dubai World (pictured above).
I for one am really pleased, since I couldn't understand how such a distant, seemingly insignificant default in the Mideast could ski-rope the global markets by the neck and pull it off the mountain.
Personally, I don't care in hoot's hell what the catalyst is. If I sneeze and my arm falls off, then I know I'm coming down with a cold, sure. But that's got to be the good news, right?
Futures are higher tonight and the potential for a reasonable gap-up for equities is strong. My eyes are burning from screening a couple thousand charts the last 48 hours, but I'm emerging finally now with my new go-to list of eligible shorts.
I'll key on this as an attack-list throughout the week and key the groups especially which lead us lower on any given session. I'm not trying to short the strongest names in the market. Some of these still show reasonable, overall relative strength (RS), but those few are exhibiting some other negative divergence (and all of the groups below are declining notably in RS for the previous 1-to-6 weeks).
Why am I getting short this market? Do I see the next shoe dropping for the markets?
Ha and Ha! I'm getting short for a variety of technical and psychological indicators (and a hint of fundamentals, but fundamentals have been mostly negative for some time already; you knew that - which is why you were either on the sideline or else getting short some many months ago...let's not go there for your sake).
Severe downside? Oh sure, most definitely most maybe, it will perhaps be serious.
Or not. That's not my game this decade. This is the decade to let the market define the terms. I'm just a trader with smugs and few hugs (I sense you noticed I was getting snarky just now) and why the devil should I pretend to know how this chess board is going to play out six and sixty moves from now?
You keep me posted on that and we'll stay friends, okay?
Anyway, as always, this is not a list of here-and-now shorts, but an eligible list of my personal candidates. This week's screen is focused on the industry groups, both highly and poorly ranked, which have been dropping notably in terms of relative strength (RS). My selection process beyond that is based on divergences, liquidity and more.
Good trading - should be another fun weak(sic!)...