Market Thoughts

Today could be  pretty pivotal day so I wanted to write down some thought to make sense of it all.

I started the day very biased to the long side and had big gains in VRX, AA, TEAM, WTW, and smaller gains in MZOR and TWTR.

My initial trading plan for today was to sell TEAM -- due to earnings and buy one of the best looking breakouts I saw from Friday-- PRGS.

From the onset that market was in rally mode.  I sold my TEAM into the opening prints up another $1.50 from the day before and started hitting my PRGS target.  Then TWTR pulled back to its 5ema and started to bounce so I got really aggressive.

But I noticed something that really concerned me.  SO I sold ALL of my positions.  I am now testing short positions in BABA, NVDA and YY.

Many of the high beta stocks were starting to fade.   Combined with the indexes gapping up after an extended run--exhaustion gap?

Charts.  Follow the leaders.  They are giving us a clear signal to step aside.

And the leaders: (4 hour charts to show gap and fade)

ADBE:

ADSK:

BABA:

NVDA

More speculative beta stocks:

MZOR

NTNX

OSTK: