Postcards (Part Deux): Cut to the Chase - Momentum is Red

Plus... a state so good that we have three Senators.

Dear Fellow Expat:

Two days ago, I commented on how to trade negative momentum. Today, an incredible rate of change reading put us squarely into that territory. I said the need to start hedging a few days ago after the MACD turned negative and early signals flashed in the wake of Apple’s earnings report.

What is causing such strength in selling pressure… and a drop in buying?

It could be anything. My hunch is that hedge funds have been selling since the recent Double Top confirmed at the start of the month.