They also serve who Stand and Wait

Last week's post on Capital Preservation is still in place.  I am still not ready to get back in the water.

As posted last week, I will only get in after I see an end to that nasty Head and Shoulders pattern. Looks to me this pattern is working for bears. But we remain patient and then try to get in.

The first neck line is now broken as you can see from the above chart.

Capital Preservation Mode, Death by Thousand Cuts Markets

Some time I go I had posted some of the charts I like to monitor for Bear prowls and how to protect ourselves from the distress it causes to our hearts and our portfolios. I am currently sitting on cash with some small positions in stocks. 

We review those same things again

These are some of the charts that I like to use to time the market along with some other indicators

Another pattern that is developing is the nasty Head and shoulders pattern in SPX chart.

If this pattern does not really come into play then we are looking at an explosive move up. But till we Mr. Markets shows us his hand, we sit on hands and be in the Capital Protection mode.

Waiting for Clear Direction

No Trades this week. Markets are in some kind of turmoil. I am expecting a move downwards on this bearish bounce.

It would be better for overall market if SPX moves down to 1286 area (50 day Simple Moving Avg) to clear all the excess to start a new wave up.

Till market gives a clear signal, please hold on your bullets and preserve the ammo and health.

I will post in between if market gives a buy signal.

TUG OF WAR

The markets were again rescued by the FED helicopters and High Frequency Computers.

The bulls tried to take the markets up this morning breaking the 1184 levels on SP-500 and then Bears came back and took it down. The HFT computers were favoring the Bears this afternoon.

Again after 2.00 pm, the HFT computers changed sides and started supporting Bulls..

Here is another picture that shows what needs to happen for us to become BULLS again. Also remember we are not BEARS either as of now..