Where is My pullback?

qld-nov-17th-16-2

So much for the election causing a decent sell off.  There was one, but it happened just after midnight in the futures and by the time the market opened it had just about fully recovered.

My stance remains the same, this market needs to have a sell off.  It will remain choppy until that happens in my humble opinion.

The one thing I have to contend with this view is the typical santa rally that happens seasonally, but if it happened every year it would be easy, so perhaps we will not see a typical rally towards Christmas this year.  In any case, I think this market it just too high to buy.

In the chart above are signals from the trading system for the Nasdaq ETF QLD.  Having missed the big run up from the Brexit, there has been no clear signal or opportunities since.  In fact the two trades after the brexit rally where losses which thankfully I stood aside from.  The system just signaled a new entry, but once again, I would rather wait for a better opportunity to get back into the market as I think this will be another losing trade.

I will continue to sit on my hands until I see some sort of pullback that I recognise as the right opportunity.  Its coming, just don’t know when…