Business Insider is reporting that a tactical team at UBS with a hot hand is saying sell. And ZeroHedge is sharing a Goldman note about raising cash for expected volatility. Seems accurate, but you know, ZH. I cannot confirm their list of companies issuing bearish notes in that article.
Anyway, sell stocks is the easy call to make right now. Daily RSI on ESM6 as I type is 71, and has been 69+ for 4 consecutive trading days. Also, the buyback window is closing as we head into earnings season. CNBC is also noting this here through their artificial intelligence market wisdom software collaboration.
I thought markets would pause this week too and had several short-term defensive play ideas. Yesterday only 1 triggered on DAX and today is already out. TLT cannot catch a bid, and has been rejected from its weekly pivot 2 days in a row. Stocks could be dropping but they aren't. I did suggest a VIJ6 buy at 16.85; the low today was 16.92, so that missed by a hair unless you allowed some discretion. And IBB the weakest USA sector has rebounded quite strongly as VRX stabilized, as I thought might happen.
So maybe things change tomorrow but right now things look quite bullish. I will change my tune if we see NYA and other risk asset indexes / sectors with long term level rejections. Right now we aren't, and only 7 trading days from quarter end. If stocks are green on the year as more and more are this will put pressure on the fund managers to buy. I am not necessarily saying jump in and buy today, as anyone following along got decently long from the end of February through 3/10-11 after having starter longs on 2/12. But right now holding longs, and being careful ie not so eager with shorts or hedges, is proving the right approach.
File this under TPP (still bullish) vs UBS (sell now).