Hi folks!
Decided to go home 100% cash ahead of the close today and thankfully I did as it appears that AAPL earnings missed their targets. The stock is down $30 in after hours and bringing down all the index futures with it.
Index futures pointing to a gap down open tomorrow. On this down open, my goal is to be looking for "BOUNCE" plays in ETFs. As you will see from the attached SPY chart that we are getting into quite an OVERSOLD position now on the "60 minute Road Map" charts and hence a counter trend bounce is likely to be start very soon, imho.
I also attached the NYMO chart which will show you that we are slowly but surely digging into the extreme 'OVERSOLD' that we have seen time and time again. Based on the NYMO chart, there is still more downside potential left however sometimes, THE MARKET HAS TO GO UP BEFORE IT COMES DOWN. Going into tomorrow, i'll be on the lookout for LONGS to play for a short term bounce. I would be looking to unload longs on any strength if we do see a 1-3 day bounce materialize and possibly even look to go short some stocks or ETFs on strength(if/when we do see it) as it sure feels like we could be in store for more downside in the days to follow.
hope this helps. Trade em well!
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