Earnings have wind down, with a few more retailers reporting. Last week, we see the Nasdaq break Jan's low and S&P 500 and DOW are both near Jan's low as well. In the above short term chart by stockchart, we see the Nasdaq accelerating its downside relative to the other 2 major averages since mid Feb. Shorting or buying Puts on the Tech is a good idea.
What's to happen next? We won't see any significant market moving data coming out until end of the week. As I said in the earlier post, this market is now very news/event driven. Rumours of Fed cutting its rates earlier, credit or liquidity issues are swinging the market up and down. Adhere to the 3Rs:
Reduce number of open positions Reduce number of contracts Reduce time frame to avoid whipsaw
Otherwise, staying in CASH is an option too (excuse the pun) Mon: Wholesale Inventories Notable earnings: HOV
Tue: Trade Balance Notable earnings: DKS
Wed: Notable earnings: AEO, MW, SIGM, TBSI, VIP, ARO Thurs: Retail Sales, Business Inventories Fri: CPI, Michigan Sentiment, Fed Chairman Benarnke to speak about home onwernership Notable earnings: ANN