Now is the time to Protect Capital

The market has been giving warning signs since the summer, every rally was built on decreasing volume, while each sell off occurred on increasing volume. This is one of the most time tested macro warning signs that we have. The institutions are distributing, not accumulating. Insiders are selling at record pace. Now is the time to hedge, trade with extreme discpline, play with some bearish instruments.

Doesn't mean we're going to "crash", but the probabilities are not aligned in your favor if you are dip buying

Many people fail to appreciate that real life-changing money is made at the end of bear markets as the trend changes toward bullish. These moments only occur so many times in each of our lifetime's, all of your activity in the other 95% of the time should be protecting capital, generating cash flow, and positioning for big moves at the end of these bear markets. Just go back and look at 2007-08, Dec2018, Feb2020 & the subsequent price action

Feels like we're nearing the end of a bull run & while you might miss gains, it's important to position for bearish price action

Comment:

This is a crucial spot for tech, if it can hold the January lows, and build some sideways action, we might have seen a short term bottom.

The volume profile and price pattern (Head & Shoulders top) suggest that a close below the January lows could send us back down to 310-315 range

IGNORE THE HEADLINES & LET THE CHARTS GUIDE YOUR DECISIONS

Comment:

Not much in the chart to suggest a change in trend or short term bottom, though the QQQs seem to have enough support to hang above the 262-265 range. With rates rising, and potential monetary and fiscal headwinds for growth stocks, it's important to question what happens should we fail to hold 262ish.....it's hard to find support before 228-230 (another 12% drop), which would rock a lot of tech stocks that are already hovering near their yearly lows