This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Oversold S&P 500, Markets Make it Hard to Consider Shorts

"I'm more concerned about controlling the downside. Learn to take the losses. The most important thing about making money is not to let your losses get out of hand." -- Marty Schwartz

NEW YORK (TheStreet) -- I don't often talk about politics or world events but before I share some brief thoughts on the lackluster market action, I do want to get a point across.

I'm not sure if it is because of the wide reach of media or if there are more disturbing events going on than what would be considered normal. Whether it be the still missing young girls in Nigeria, the ongoing situation in the Middle East, the escalating crisis in and around Israel or now the passenger plane being shot down over the Ukraine, we aren't having the best summer in terms of making money but really, that is such a small and almost superficial/trivial detail.

If you're as blessed as I am to have won the birth lottery and have been born in a peaceful safe nation, in my case Canada, we really have to give our head a shake sometimes. We are so lucky to be safe and free and sometimes we just have to take a step back.

U.S. Markets Close Sharply Lower on Geopolitical Uncertainty

Yellen's Dilemma Is Getting People Used to Perpetual Uncertainty

I know I can get frustrated sometimes at things that are really so trivial in the grand scheme of things. I've got to really count my blessings and be grateful for what I have and the peace I enjoy in my life. I hope we can all send a few thoughts out to those who aren't as fortunate and really take a look at the big picture to realize just how lucky we are.

Markets and stocks will turn around and make us lots of money -- they always do -- and continuing to live in peace is even more valuable.

Realize that what we have truly is priceless.

Markets continued to chop around with a bias to the downside. We did see some decent weakness into the close but now we are seeing oversold readings and markets are at levels where support can be seen, at least the Russell 2000 looks that way.

I tried a short today using the DIREXDAILY Triple Levered ETF (TZA), which started to work, then came back to even so I got out for a tiny gain before the late day move lower came.

While I am playing small, I am playing safe. If the trade isn't working right away, I'll get out.

(SPY) looks ready to roll over some more now but we are already seeing oversold readings making it hard to go short now. Tops can take some time to put in and, as I talked about on Wednesday, a slow summer of choppy and basing type action would be best.

Good times always follow these types of markets so all we really have to do is wait. It's easier said than done, but having patience is one of the most important skills to successful trading and investing.

This 196 level is a short point using the 21-day moving average at 196.11 as a stop area but, again, we are oversold making it hard to short.

Have a nice night, Friday and weekend ahead.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SPY $206.33 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs