One day does not make a Trend, but ...

The most interesting thing about yesterday’s weakness was it was not directly related to a news or a press conference or anything specific that happened yesterday or the day before. It seemed more based on the realization that things are not as good as we may have all thought it to be.

Here are how the major markets trending heat map looks like after yesterday trading:

All of them weakened from the end of last week and 4 out of the 7 are trending short-term bearish now.

Here are the SPX sectors trending heat map:

There is a good probability that this weakness, which was very broad-based, continues for some more days. Some folks are again calling for a new low that takes out the October lows. I would say that is too much expectation for now. We should see what happens the next few days and take what the market gives us.

I have been positioned short the market, so yesterday was a nice bump for my holdings. I use options that decay over time. So, I will most probably roll over some near dated puts further out.

In my retirement accounts I have been in money market funds waiting for the next opportunity. I will go short using inverse leveraged instruments today. The safe instruments would be SPXS which is the 3x inverse leveraged S&P 500 and the SQQQ which is the 3x inverse leveraged QQQ.