Put the needle on the record because it’s time to skip yet again. The market on my time frame has become extreme and as such it is time to remind myself what 2013 conditioned me to do in these situations: Ignore. For the most part I am in agreement
with this if only because I see a number of stocks setting up and until this is no longer the case or the one’s I’m stalking begin to break down, being cautious during market extremes has not paid well. This being stated, I’m not particularly adventurous at this stage and while I will look for opportunity when it comes around, my tactics and time frame have been modified under present circumstances. For the time being I’m taking smaller size, faster gains, and less forgiving with my time stop.
Three of the breadth indicators I focus upon the most are currently running a high temperature. On one of the shortest time frames I watch, the $MTMW reached rare air with a peak of 82% which has dropped considerably over the past few sessions to 74%.
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| $MTMW |
Worden’s T2108 has not peaked above the 80% level, but has been well above the 70% for a period of time now and this zone is often where pullbacks/corrections begin.
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| T2108 |
Last, the StockBee Market Monitor I follow is indicating a number of extreme breadth readings across multiple time frames.
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| Market Monitor |
So, while I’m cautious here I’m still noting pockets of strength that are worth playing tactically until the market sets up better for more strategic positioning. A few stocks I’ll be watching through the week are:
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| AER |
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| AWAY |
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| EXAM |
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| LIOX |
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| SNMX |
