At today's Open Bar, I walked through some of the most important charts in the market.
The bears are clearly taking control, and this is illustrated by a growing list of topping patterns.
Waning momentum has turned to outright bearish price action, and that weakness is spreading to the broader market and major averages.
Now, the leaders could be next to roll over.
I discussed how today's market reminds me of the 2022 setup - as more and more failed breakouts turn into potential tops.
The dollar is a looming headwind as well, currently building a tactical base around 100.
A breakout from here makes an already rough environment even worse for risk assets.
I'm positioning for it, adding tactical short exposure and looking to book quick profits on any further downside.
What I'm definitely not doing is chasing any stocks that have already cratered.
I'd rather short the fresh tops, which tend to be leadership stocks and indexes. I think there is a catch-down opportunity there.
We reviewed some of these groups on the show, so be sure to rewatch the Open Bar if you missed it.
And always remember the hacks in times like these: stuff like sitting on your hands, mixing in shorts, and reducing position size.
Just doing less and waiting for the dust to settle is a sound strategy, too.
Better times are just around the corner.
Cheers,
Steve
