Defensive-Minded Coaching

The S&P 500 Index just flipped red on the year, with latest phase of the multi-year bull run mired in a bonafide quagmire. 

With the exception of the mid-cap index, all major indices are currently pushing oversold conditions. But if we are, in fact headed towards a major breakdown then that should not matter much---We would just ignore the oversold conditions and keep pushing lower yet. 

Our main focus inside Market Chess Subscription Services has been on avoiding the emotional rollercoaster many market players have put themselves through of late, instead focusing on playing great defense: Religiously cutting losses small, selectively taking on new positions, limited position sizing, etc.. 

And that continues to be the case this morning, with many momentum traders starting to really that the law of diminishing upside returns may very well be setting in. 

At the moment, AAPL may be a short. I am also looking to see the natural gas inventory report reaction on UNG, coming up soon.

Also note the lack of risk appetite for beaten-down growth names like TWTR, another sign of the air coming out of the market amid the plethora of negative divergences which have been brewing for a while now.