Trender Nailed the Short

What a crazy week. We saw history in the making on Thursday and now it will be interesting to see the effects of that sell off...attacking the algos etc. I haven't posted about my TLT Trender v2 in a while but I still follow it. Check out it's recent chart of the S&P 500:As you can see, the Trender nailed the exit on this one...sometimes it's a little early or late but every now and then it's spot on. So, obviously, short is the way to be for the time being but the big question is how much follow through will we see? Every sell short signal I've seen over the past year has been a very short momentum trade at best. One thing that I noted on the chart is that the Fisher Transform MA is still positive...until it gets negative, I am skeptical of the follow through to the downside.

We'll see, maybe Greece and Europe is a big enough catalyst to send the market down some more. As always, time and price action will tell.

TLT