Wheelhouse View of the Market

Storms on the horizon? The market indices are poised to test the summer lows, and the price action does not look promising. However, market breadth, though negative, is in extreme oversold zones on the Market Monitor primary indicator. Secondary indicators are not oversold though, which leaves the door open for more downside in the shorter term. VIX looks like it wants to go higher, making higher lows and if it was a stock I'd be watching for a breakout.

Several things can happen here: we either go through the lows like butta and go into free fall, we test the lows and hold to continue the range, or we test the lows for a few days before breaking them. In any case, I am not doing any swing trading but will day trade as my schedule allows. I did one trade last week on GMCR and lost 0.5%, and the market was very odd last week, so I packed it in for the week after that. This week I should have the opportunity for at least two days to do some day trading. The T works in bull or bear conditions, just have to know how to trade your stocks.

Have a great week and a profitable one. Here's the uglies: