A tough day for the market as we finally see market volatility find its way back to the market. Financials were a sore spot for the market today. Rate hike odds fell as bond prices jump over fears Trump may be impeached. These fears are not that new, but perhaps an excuse for the market to finally experience volatility. This will be a stop moving evening as today’s selling did do some damage. We are still quite long this market, but we are certainly looking to protect our capital if we are to see further downside. No one knows where this market will head next, but we are not going to ignore the shot across the bow we experienced today.
There are certainly a lot of bears coming out of the wood work today looking to short anything they can get their hands on. It is funny after one day of selling everyone is now a bear. Not to mention the headlines stating the market crashed. It is funny that SPY hit an all-time high yesterday and closed below its 50-day moving average today. We will look to see if this has ever happened in the past. It will take some time, but it will be interesting to see how many times this has happened.
There is a lot of work that must be done tonight. Commentary will be short. Make sure you have your risk in check. We must make sure our losses are small and do not destroy our capital. Let’s see how the market responds tomorrow.
