Soft Around The Edges

This is the first morning in a week when I’ve been satisfied with what I see on the screens in front of me.

Don’t get me wrong; it’s not like the market is plunging or anything. On the contrary, the /ES is near lifetime highs and is, as I’m typing this, in the green, having done absolutely nothing since yesterday’s close.

Tech stocks, however, which is where I’m focused, continue to be squishy, having slunk away slowly from the apex of the symmetric triangle yesterday (thank GOD). /NQ futures are down over 200 points as of this composition.

Most encouraging still is the fact that some charts are actually working As God Intended ™. Western Digital (WDC), which I shorted yesterday, is a fine example, since its failed channel should prove bearish.

And indeed, it was, as overnight action indicates. Huzzah!

Although I have no energy positions, I am keeping a close eye on crude oil, since there is still complete uncertainty about the Iran/Oman deal, what the U.S. will do about it, whether we’re going to disassemble the taco bar for the umpteenth time, etc. The base on crude isn’t absolutely prescient (as illustrated on the left side of this /CL chart), but it’s still going to be far more meaningful and truthful than the chitter-chatter you see on Twitter.

I am entering the day with 20 bearish positions and a commitment level of nearly 100%.