Even though last week looked and felt like a great week I’m going with the thesis that this move is a dead cat bounce and an opportunity to put out some shorts. There were a lot of shooting stars made on Friday. Many of them were caused by stocks failing to hold above their middle Bollinger Band. If those stocks trade under Friday’s lows, I’d look to get short with expectations of a move back to the lower Bollinger Band. Here’s an example of the type of chart I’m seeing pop up all over the place this weekend:

There’s really not much to like about that chart — it’s in a clear downtrend since late August, appears to be constrained by its lower Bollinger Band, and made a shooting star on Friday. It looks like a pretty high odds short. The only question is whether they will trigger as shorts by confirming the shooting stars.