I suppose I could say that my caution as expressed in recent reports was finally rewarded yesterday as the market reversed to the downside, quashing the Dow Jones Industrial Index’s attempt to post twelve straight up days. The break occurred after President Trump uttered a stern, if not an outright saber-rattling, warning to North Korea, promising, “fire and fury” and a veritable military fireworks show if its belligerent little leader kept up with his threatening antics.
Some might see the news as much ado about nothing, some might see it as indicative of an impending military conflict that simply cannot be avoided. Either way, it sent the market spinning to the downside, but there were already some cracks in the market’s armor prior to the news.
From an entirely objective and concrete point of view, as I see it, the fact that I was starting to pick up some short-sale targets on my screens in the form of recent later-stage failed-base types of set-ups in stocks like Amazon.com (AMZN) and ServiceNow (NOW), for example. That gets me leaning slightly to the short side, even though several of the long ideas I discussed in the weekend report worked out as decent swing-trades over the prior two days to start the week off.
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