Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Tuesday, August 19, 2014

More Money Off The Table

Stock Market Technical Analysis Blog

click on image to enlarge

In the market today the current short squeeze continued to take the market higher even though the volume on the SPY and QQQ is falling substantially lower each day.  We have decided to reduce the remaining half of our long position (from our 7/25 blog entry and the second entry on 7/28) to a 1/4 long position as the S&P has reached its upper red channel line, shown above.  We suspect Team Yellen will want to test the 7/24  S&P 1990 high even though its horizontal line across is just barely above the upper red channel line.  If they don't goose it a little higher we will be quick to close out the remaining 1/4.

If we continue on up to S&P 1990 level we will close out the last quarter as it hits it.  If the market breaks out above it and then shows support on the top side of the blue line we will begin scaling back in again. Right at that 1990 line will be a dangerous place for both shorts and longs.

Trade well my friends