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Author Message   Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3964 Registered: 05-2011 Posted From: 24.164.46.35 Rating: N/A Votes: 0 Posted on Monday, January 24, 2022 - 3:17 pm:    Blue Chip Trader - - Sell First, Ask Questions Later About 2 hours into this Monday morning and Sellers still dominating the action. I highlighted on Friday's expiration how there's a "snowball rolling downhill" effect in these markets, fueled by buyers overleveraging themselves and taking on too much risk to find the bottom and then having to blow out their position as prices roll back down to new lows. It's a vicious cycle that's evident in the extreme bearish breadth readings over the last few days, even more so today (VIX > 35; Put/Calls > 1.20; cumulative A/D line -5500; TRIN 2.0, etc). Hopefully everyone has heeded my tips to cut back on position size and have a few Swing Short/Hedges out there to reduce any significant damage to their portfolios. There's no doubt we are looking at extreme selling pressure taking place, but with nearly every strong trending market, we need to see a turn before committing. No one knows when it will come, but when it does, it should become apparent that it is happening. Anything before that is just speculation. I will say I am monitoring the Technology XLK space closely as there likely won't be any meaningful bounce without it moving back to the upside. The 145/150 lows from July/October looks like a zone from which a reversal can happen soon. The longer sellers remain resilient on the offer today, the more I'm thinking a Turnaround Tuesday is the better prospect. Bottom line is we have "fast and loose" market conditions with a strong bearish bias. Daytraders are better off Shorting first and managing that risk until proven otherwise. Buyers need to be more patient and plan out how to manage potential further downside risk.