The selling pressure and volume increased into close today. We already talked about the fact that the market was a bit overbought and was due for a pull back. The question right now is...Is this the start of the move down? I would assume that we could easily pull back right here. The VIX looks like it is starting to move up. The DOW Transports have already started to move down which could indicate that the market will soon follow. The two bearish trades that I have focused on in my classes this week are BA and CVX. I still don't think it is wise to be aggressive in this market, but you could start to look for some bearish trades in case the market does start to correct. I told you before that the Greece story is not done yet. Experience tells me that this is just the tip of the iceberg. The dollar is still getting stronger which will continue to put pressure on the commodity stocks. Have a great weekend.
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