Will you be Short? I hope so.

September 13

1420 EDT

"Trade what you see, not what you believe you see."

What do you see? What do you see on the daily chart? on intraday charts?

I see a daily sell on momentums, an hourly sell on sentiment (daily has been on a sell). But the biggest sell signal is the volume. Where did it go?

It does not really matter if the indexes go higher or lateral from this hour of Tuesday, September 13th. I trade with confidence, but am rarely sure.

At this point, everything I know and see is telling me to be short - as short as you can be (not catastrophe, or end of world).

There are a few times in a trader's or investor's life when they see the plain written word and signals to enter a market and take 1,000+ Dow points home with them in a few days. Further, after taking that 1,000+ points in a few days, the trader or investor has the opportunity to do it again by reversing the position.

In this situation, it is be short now, then be long at the lows in a few days. In my view, this is like knowing what was going to happen on September 27, 1998, or knowing what was coming on October 12, 1987 and reversing on the October 20th lows.

You may not be comfortable taking action now. Then you will likely stay in cash or hedged. If so, then that is what you should do. Investing and trading is about you and your plan. First, plan to not lose capital, then plan to make some. Follow your plan. Then trade it. Execute the plan.

If an investor wanted to be long, then the investor would buy U.S. Treasuries and hold for a few days.

Remember! The uptick rule is gone. The only downward protection to the indexes is the collars from the exchanges.