There have been no updates because my opinion hasn’t changed and no new opportunities have presented. Having been bearish since late February signs of a bounce are starting to build. Its too late to be short or hang on to shorts right now I believe.  

The “canary in the coal mine” stocks that are giving clues are two categories. First the stocks I have mentioned for the last month I would look to be on the long side when opportunity presented. These include Walmart, Uber, and Netflix. I only took advantage of Walmart, but all three have done well.

The second group of stocks are those that are rising here despite headlines that scream they should not be going up. These would be housing stocks and Casino stocks.

So I am monitoring these two groups of stocks carefully. If they maintain a bid tone it will spread to the general market. And if that happens the number one sector I would look to is semiconductor stocks.  Why would one buy semiconductor stocks in a trade war with China? I don’t know!!! But that is the sector that looks ready to move up next in my view! Chart of Semiconductor ETF attached.

Thanks,

Joe