The market acts like it isn't sure what to do with itself. The market rallied off the lows this morning immediately following the market's open, but since then it has given back those gains and momentum and now is just floundering around.
Up? Down? Who freakin' knows. Buyers and sellers aren't overly inspired except for when it comes to selling these banks.
What has the sellers concerned here is that Janet Yellen is going to be flappin' her yapper over the next couple of days, and it is likely that she is going to use it as an opportunity to boost the markets so she doesn't look like a total goon for raising them back in December.
What other choice does she have?
I went ahead and covered my last two positions this morning for a net profit and took on one long position. I don't expect to add much more at this point. Instead, I'd like to see the price action tomorrow first.
Below are the shorts that I like. Granted there aren't a lot of good, quality risk/reward setups. What I could find are listed below. Sure, you can short facebook (FB), Google (GOOGL), Amazon (AMZN) or Netflix (NFLX) simply because that is what everyone else has been doing, or you can just short a bank of your choice because that sectors sucks more than all other sectors combined, but you can't manage the risk on those trades in an adequate manner. The potential to get squeezed, even temporarily is significant, and who wants to endure that?
So keep your risk to a minimum, regardless of the market, and you'll do just fine.
Here's my bearish trade setups: