Too Late To Short

Sometimes patience is a good thing, but this time waiting to short was a mistake, and we are down over 50 SPX points from the close and increasing.  Its been a week of missed opportunities, but if the selling gets extreme enough to take the SPX down to 2750, I will be interested in buying that dip.  We'll see how the afternoon trade goes, but since I missed the short, I will look to get long on further selling.  Unless this sell cycle turns into a month long affair, this second sell wave should be finished by Friday, as that will be trading day 12 of the selloff.  That is a common length (12-13 trading days) for a selloff in the past.  After this week, the market will likely grind higher as the stock buybacks slowly come back. 

I am not ready to get super bearish on this market yet, the seasonal effects will be a marginal positive for the stock market, so I will wait for later this year/early next year to put on long term shorts for a big down move.