Swing traders have been largely destroyed in the last 6 weeks as the market chops sideways along with the vast majority of equities. The technology stocks have been the safe place to hide. And that is great as long as it continues. But if for any reason at all the market starts to sell off, these stocks are vulnerable. The top 3 stocks have contributed 70% of the gain in the SP 500 this year. The top 7 stocks make up 50% of the Nasdaq composite average. And as long as everything is rosy at the top of the heap, those stats don’t mean much.
But like everything in the market it’s a two edged sword. The out performance of the Nasdaq due to this leadership also means its a very small window of liquidity if there is a run for the exits. This is no place to be long stocks in my opinion. Yes I am aware, there are too many bears, too much disbelief, and that has put a floor under the market. But I would rather do almost no trades, as I have done, then over commit to shorts, or throw in the towel and buy long. Nothing to do here but wait. We all wish it were otherwise, but I am not smarter than the market, and the market is in an epic period of indecision.