New Short-Term Lows For The Indexes

I don't know about you but the market keeps getting uglier and uglier. The good news about that simple observation is it gets us closer to a low.

Unfortunately, I don't see that happening any time soon. I see a fresh new batch of shorts tonight on my scans and know some of these will reap good gains with their TERRIBLE patterns. You don't see charts like this in a bullish market. The trends are down and there is not much us to say besides that.

The bullish/bearish newsletters, put/call ratio, and VIX will give us a clue when the bottom might come and they are telling us there needs to be much more downside before any extreme is put in.

With all the ugly charts, longs I have been selling and trimming, and lack of new buys showing up I think it is safe to say any rally that happens anyway will only be sold.

The damage is all around and it will take time to recreate nice beautiful bases for a successful run to new highs. Until then, relax and keep cash high (unless you are a master short seller).

The market will stop falling one day and launch a great bull again, just like in March 2003. The earnings are too good and the market is not that expensive on a trailing, current, and forward looking P/E base. And like I said before, unless earnings crash-which they are not-the uptrend that will come about from this downtrend (bear) period should produce wonderful gains.

Until then, the market sucks for longs and continues to treat the bears with the spoils of the bulls. But don't take this to mean it is just time to short anything and everything. You have to be selective and be prepared for a big oversold relief bounce at anytime.

Prepare for every situation you can foresee coming and nothing will catch you off-guard.

New Swing Longs: TSAI CHH TESOF

Longs Outperforming Market: NDAQ-185%, TGC-95%, BCRX-88%, ADST-60%, AOB-22%, SYS MESA BRLC VICL MTN

New Swing Shorts: TRID GNSS LTM BUCY CLS CMLS DBRN BCR LEE WFSL NVR BRKL VOLVY ALDN KERX DHI MWIV ISE

Shorts Outperforming Market: TNH-28%, WCI-19%, EVVV-16%, LZB-13%, VCG BOL NAV

Small Stocks On Radar Screen: VLGEA TRT TOD LRP PZA GROW DASTY