From the Trading Desk

Crude Crumbles; Dow Falls Again

Led by a large decline in energy names the market had a tough session as only the NASDAQ could come away positive on the day. Small cap stocks continue to be a trouble spot for the entire market as investors continue to flee. Not a good day by any stretch of the imagination and we continue to see exit signals trigger. We will see where this market takes us, but for now it is flashing warning signals regarding turbulent waters ahead. We must cut our losses before they get out of hand and continue to protect our capital.

There won’t be much commentary tonight but here is an excerpt from tonight’s new positions post:

I have gone over the problems with this market ad naseum for weeks now. It is all starting to finally come to light and while slightly less than half of my portfolio still looks extremely bullish the other half looks to be in some trouble. If the market continues to sell off, I would think that the strong stocks are going to join the laggards. However, I will keep an open mind and hopefully the market can find a floor and I can continue to ride my leading stocks higher. At the same time, the capital raised by letting go of my laggards can then be placed into new leaders if and when they show up. Unfortunately, hope is not a methodology so I must have a contingency plan.

We are not going to play games with this market. Many will try and out think themselves. There is no need to fight with the market. Simply go with the trend and move on.

Before we close, March Madness is upon us. Use coupon code: MADNESS and take 30% off and subscription package.

Best of luck!

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