The Keystone Speculator's Selected Short Plays Setting-Up Over the Next Couple Weeks

A little bit of fear shows up in the stock market for the first time in a few months. Investors and traders puckered their buttocks last week wondering if the Wall Street analyst calls of SPX 4400, 4500, hey-ho, 4600, will come true this year or if they are fantasyland. It is March now. The year moves along.

The negative divergence showing up in the majority of charts, including the indexes, create the smack down as Keystone explained before it happened. The stock market has a long way to fall for several weeks; the fun has not even started as yet. The market has to Burn to Shine as Ben sings with an assist from Jools. Most tickers sh*t the bed late last week with lots of downside so it is a tricky time to short if you missed the move off the top. Higher volatility tells you the intraday and day to day moves will become extremely violent so lots of chop may develop. You have to watch that you don't become chop suey.

Before the selling is underway in earnest for the multi-week pullback, a bunch of other sectors and indexes listed below will have to play catchup and receive their neggie d spankdowns. 

Of course the Federal Reserve is always the wild card. If Pope Powell hitches up his pale green robe and pulls out wads of cash that he tosses into the air, well of course the stock market party will begin again.

As always, do your own due diligence. The tickers below are all set up as shorts. They will top out on their weekly charts over the next 1 or 2 weeks. Simply watch their MACD lines. As price prints matching highs or higher higher highs, check the MACD to see if it rolls over sloping lower, negative divergence, the other indicators are, that tells you the top is in. All you have to do is stab it and push it down the cellar steps. Keystone is teaching you how to fish not only providing the fish dinner. Focus on divergences the most important tool of all technical trading (according to Keystone's bible).

Probably any one of the plays below you can scale-in short, say in thirds. Short one-third of the ticker this week, another third next week and add the last third short the following week. Sit on that short trade for a month and it will likely work for all the tickers listed below. Alternately, you can time the short entries with the minute and hour charts, when they go neggie d, and of course always try to time short entries with an elevated TICK machine which places a few more pennies on your side of the trade instead of the market makers.

The following stocks and sectors should top out on the weekly basis over the next week or two and drop for multiple weeks. The stock market is expected to drop for several weeks after it tops out in the coming days;

JJG
DBA (DBA should roll over a few days after JJG)
CAT
DE (DE should roll over a few days or week after CAT)
XLF (Most all of the banks should top out on weekly basis over next couple weeks)
KRE (most regionals)
JPM
LSTR
MTRX
RL
NSC
SNAP
DIS
IBKR
FIVN
BYD
MGA
XLE
XOP
XLI
IYT

The tickers above weathered last week's sell-off but in the next flush lower they should all roll over.

Keystone is not long or short any of the tickers above. If you remember, Keystone called the big rally in ag as a long-term call so DBA and JJG are running-out in the weekly so be careful. Keystone took profits on these a while back. Keystone may play CAT short but it is not set up well to begin the week, as far as a short entry goes. It's going to be fun as the banks roll over. That is when the little rats will begin panicking big-time. Humans are interesting animals. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.