SPY Thoughts: Deadly Slow Day, Correction May Be Near

A deadly slow day yesterday all in all. I exited most positions and only have a few left with small exposure.

It looks like the Nasdaq was telling us the correction was near and there is just no point being in stocks unless they are moving, and so far this week they have been very very slow.

I talk often about the importance of identifying times to be in the market and times to be out or just use small positions.

It may be a little early but I do get the feeling that it’s time to be small or out completely now.

We sure had a great run lately and it’s not a time to get greedy. We may be in for a time to preserve capital, not go heavy in the market.

Just imagine having all this cash when the next good cycle comes and then doing it all over again. It really doesn’t take many cycles to make you very well off.

I did short a few things yesterday and am holding Netflix (NFLX(, SPY and Google (GOOG) but not in huge size.

It may be a little early to get on the short bus here but we could get some great shorts come up soon.

Some of the largest and fastest money I make is on the short side so we could see some nice gains soon enough.

Let’s get into the index charts whom aren’t very exciting at all right now before we go through any I’m still holding and any chances long or short I see but chances are we need a couple or few more days before we can get short in a big way.

The SPY is acting tired here as we’re in the dog days of summer now.

I am out of all my longs and have started a short here now.

A break of the channel will see me add to shorts.

I’d like to see a move to test $166 and perhaps even $165.

I’ve been wrong many times before but booking gains I can’t go broke.

I can always get back in if we move away higher but we are due for some consolidation before we get another good buy point.