The Market Looks Tired Here And About To Roll Over (Video)

We discuss the weak price action of the market, and we think the market is about to roll over and test the 2180-2200 area, we want to stay short into these levels, and see how stocks and the financial markets react to these levels from a stops evaluation basis. But this is our initial target, and markets oftentimes overshoot in both directions at key technical levels. Therefore we want to let the market tell us when to take profits on these trades.

But there has been a massive run-up since the Trump election, most of the big companies have reported earnings and frankly the run-up into earning`s doesn`t justify these moves in the market for most stocks. There are a lot of “Dogshit” companies that have benefited or were moved up into this rally that don`t belong at these levels, and investors don`t want to hold these stocks at these price levels in their portfolios.

And we haven`t gotten to the fact that the real market downside risk events are coming down the pike in the next couple of months, call it March with the Debt Ceiling Debate, and European Election News Cycle, not to mention Donald Trump has managed to single handedly alienate half the American and Global population in just his first two weeks in office, just wait until he tries the border tax, and starts a global trade war.

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Frankly, this is a pretty easy short here in my opinion, and a rather conservative retest area relative to where markets could fall to under multiple Trump scenarios that potentially could play out this year. This is just the low hanging fruit in our opinion. In short, the Market appears tired, and about to roll over to the downside over the next couple of weeks.

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