Momentum Seems a Bit Fatigued

Posted on Nov 16 2014 - 11:26pm by Sharpe Trade

A few days ago, I mentioned that in regards to the equity markets … momentum seemed a little tired.

I would say now, without any real meaningful new highs made in the e-mini or the S&P 500, at this point, momentum to the upside is more than a little tired.    Now it’s getting fatigued.

I’ll need to see a bit more price action, and we’d need to actually printing lower than 2023 in the December contract before starting to think about turning bearish short-term.  I try to never predict, simply look for implied probabilities, and read what the price action is telling me today.   I am always willing to change my outlook, as price dictates.  I understand that we are staring at that time of year when market participants begin to expect a December year end rally.  I’m fully aware of that.

I have no hedges on at this moment, and still hold stocks in the portfolios I manage.

I’m just saying, that for today, momentum seems a bit fatigued.  And for larger portfolios that I’d be managing?  I am starting to think about a small hedge.

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