‘Momentum Monday’...Charlie Sheen Killed our MoJo

There is never one explanation or indicator that will signal a change in market direction. That does not stop us from trying though.

I have seen price action long enough though to know that the tides are turning at the moment and many of the momentum names are sputtering.

I have been hunting around for a good post that describes some of the subtle changes that are afoot and found this GREAT explanation from Ron Roll @gtotoy. Take a few minutes and listen to Ron’s clear thinking about the change in the tone of the tape and how you may want to position yourself:

In my show yesterday, I talk about my $GOOG mistake, oil, the US Dollar and the importance of Angel List as a signal for high PE stocks in the tech sector.

I am being a lot more careful right now with entries. Trades over trends for the moment.