Indicators still on Sell Signal

We currently are flat, having gotten stopped out of the TZA trade last week at $19.78 with a 72 cent loss.

Our Proprietary Momentum Change Indicators are still flashing Sell for the equity markets.  The SPX Sell signal has been confirmed 11/12, 11/19, and again 11/26.  We are looking for a new place to re-enter the short side.

The Momentum Change indicators that generated a Sell signal for the Euro 11/8 at 139.20 is still in effect, and the Buy signal for the US Dollar first issued 11/5 at 76.50 is still in effect.  Activity in our domestic equity markets continue respond the FX market.. with Dollar strength and Euro weakness promoting equity weakness.

Om addition to our Momentum Change indicators, there are significant negative divergences in the A/D 10 day EMA, the McClellan and our proprietary sentiment indicator.

Another indicator that has had very good record of recognizing approaching significant decline in the equity market is a Systemic Risk Quant fund, HSKAX, that  flashed a warning 11/22 that a breakdown was imminent with in 1 to 5 days.

Traders should maintain existing short positions, and we will look for an opportunity to recommend another trade on the short side.

Bill