Investing to Wealth

The NYSE TRIN was at 13.2 on Friday. This is an extreme reading to say the least. Though market was down significantly, there was no panic behind the sell off. This doesn’t look like a market that’s about to bottom. This looks like a market that is getting very comfortable trading at these levels. There are no buyers to be found. Smart money is slowly but surely bailing out but have been smart enough to not cause a panic.

I think SPX breaking 1000 is only a matter of time. This market is in serious trouble. It has been hard to swing trade this market lately because sell offs have been interspersed by rallies. In hindsight all the rallies have been a smoke screen. Shorting rallies is the right approach though picking the spot to short is tricky. If one waits for the prefect spot then one may miss an opportunity. I was looking for 1120-1140 region to get short but market gapped down from 1105 itself on Friday. So better to scale in shorts rather than wait for the perfect spot to short. When market is in sell off mode then emergence of rallies is at the mercy of shorts. If shorts smell blood then they will stay put and market will keep falling. Oversold readings do not mean a thing in this environment. Sellers rule the market and buyers are no where to be found.