Break of Lows...All Cash

After testing and testing over and over again, we finally took out the low. I feared this and moved to all cash early into the day on the small positions I had left. Took a few nicks that were frustrating but a part of trading. We now look setup for a new down leg as we finally closed below the trading range on good volume. I don’t know if we will get the big washout many are hoping for due to the fact that we remain so oversold. I wish we would have gotten a little follow through from the November 13 rally to work some of that off but it didn’t happen. I am feeling more likely a slow trickle down on lighter volume similar to what happened at the start of October with probably a few bear market spikes that will be shorted/sold. I am just going to remain very open to the action and see what develops. I don’t see a good risk/reward in either direction right now so I will remain in cash. Maybe we will get some extreme capitulation when Dow Industrial takes out its low. We will see.

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