Breadth, Volatility, and Leadership All Deteriorating

Tiger_Chart
11-21

The market continues to break down.

There has been no reason to be overly bullish for weeks.

• $Cboe Volatility Index(VIX)$ exploding

• Terrible breadth

• No leading sectors

• No appetite for risk

• Sell-off on good news

• Increasing selling pressure

• Crypto in a deep bear market

• Speculative names getting crushed

• Largest distribution week of the year

• Indices losing the 50 day moving average

The market has been sending clear signals for weeks. You just have to listen. All of this tells you to be cautious. It does not mean the bull market is over, but it is a good reason to be more careful for now.

It is much easier to make progress when the market is in a healthy environment. But patience is key. The next window of opportunity will come. It always does. And when it does you need to be ready.

But this is not that kind of environment right now. This is the time to cut exposure, be patient, and most important protect your capital.

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