Margaritaville

We’ve been regularly posting on our Market Commentary blog but have been silent here since last week.

The reason is simple. There’s nothing in the charts that argues for a trade except of the intraday variety and that’s not the purpose of these blogs.

There are a decent number of stocks that are holding up well in their uptrends and could resume higher should the market’s correction be brief. But they are certainly not buy candidates in the current environment. Further downside in the markets would take these stocks lower and possibly ruin their still constructive patterns.

At the same time stocks that have sold off hard could move lower as well but they are certainly not positioned for shorting at this juncture. Nor would we recommend them as longs. Should a market correction be brief and constructive leadership would be more likely to come from stocks that have not suffered such heavy distribution.

The best position for swing and intermediate traders right now is cash. Sooner than later the market will either resume its rally, inviting us to pursue intermediate term longs per our overarching trading strategy, or rally meekly to logical short selling areas. But for now neither scenario is available to us.

Rather than spin our wheels and churn our account we far prefer the opportunity to step back for a time. Welcome to Margaritaville. Just don’t waste away.