The bounce I expected is not materializing....obviously lol! I haven't pulled the trigger on a long trade yet because I noticed from the start the market leaders tech and emerging markets were showing relative weakness.
The put/call ratio however so far is at a fairly high 1.18 which is good news for the bulls. They need to see more of these high readings in the days ahead to rebuild that ST wall of worry.
Since I didn't get the "all clear" signal yet, it's really not that suprising to me that I turned out to be wrong about a bounce (so far) today. Like I said last night, since I didn't get the all clear signal, I would be very careful trying to play the bounce which to me means that the set up needs to be near perfect and with tech and emerging markets lagging badly right off the bat that to me said "stay out for now". Mind you, there's been times when staying out because of this turned out to be wrong thing to do but that's fine. In this game it's all about probabilities and even though the right decision may cause you to miss out or get whipsawed, in the long run you will come out on top.
I still may end up pulling the trigger before the day is over....
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