Not Looking So Good

Whenever I see the market bucking the tide trends as it is now, I get a little bit twitchy. Chart below shows two distinct tidal uptrends in a row that have been defied by ms. market. Its time to get more defensive in my view...I have taken some off the table last week, but perhaps more work is in order early next week. Hate to do it, but my gut is telling me we havent seen the end of selling quite yet. My initial guess, and its only that, is that we may see some lazy work to the upside until midway through the current downward tidal trend, following by a surpise to the downside mid week through the end of next week. In other words, been ugly, could get uglier. The only thing that really casts doubt in my mind is a general sense of newly found bearishness I sense among Joe Q Public and many of the so-called experts and gurus. When I hear fellow employees say they've taken profits, it makes me wonder if the market will just prove everyone wrong. But for now, a little caution to protect profits over the past year+ seems prudent. Be careful out there. One thing I have learned over the years is that the market simply loves to take trends to an extreme, either up or down, and right now there is no question we have entered a downtrend.