PHISIX Update

I just realized that I am very worried about the index. To tell you the truth, I haven't been looking at the index. It was moving sideways when the stocks I was playing were trending up. Of course, you trade the stock, not the index, that's why I haven't really paid that much attention to it up until now. I wanted to see how deeply we were buried in sh*t. :P 

In hindsight, the market gave us a sell signal when it first made a long black candle last January 18. It actually hesitated the day before. Seeing what the market did on January 17, you ought to have been more cautious since it made a potentially bearish spinning top close to resistance levels. January 18 confirmed it. Hmm... I was reviewing my ledger and I noticed I closed all positions last January 18. I shouldn't have touched the market anymore after that! :)) But, like I said, I was trying it out with the trending stocks. They became choppy given the more dominant bearish sentiment. 

Anyway, back to the index, we were given another sell signal when the PHISIX broke it's previous low and trendline support of 4008. I guess we can round that off to the psychological 4000. Today, we are retesting the index's previous all time high of 3896. 

I noticed something with all-time high plays. You remember AP, AEV, JGS, DMC, AGI, PCOR, EDC right?  What is the odd man out in that list? EDC. All the rest made smooth, resistance-less moves while EDC made a bull trap by breaking above its all time high, then breaking below it again. Sure, EDC was able to climb back up to 6 but with much difficulty. I'm not ruling out the possibility that EDC may tread new highs but all I'm trying to say is, for an all time high play to have that resistance-less feel, it should no longer threaten it's previous all time high. AP, AEV, JGS, DMC, etc. breezed past their all-time highs. It never looked back. EDC looked back. Now, the index is also. So, based on this kind of move, I am not expecting an uptrend or momentum to build in the index. Best case, we are looking at a sideways move. But the market is actually already trying to start a secondary downtrend with trendline support at 3800 to 3750. 


Sell on strength.