It was not a pleasant day in the market. Led by the decline in the NASDAQ the market suffered a day of distribution. The NASDAQ 100 simply could not hold up against the onslaught of selling. We are increasing our hedges and raised cash with stops firing off. If we are going to hold up we will need to avoid any further distribution and see this market stabilize and move higher immediately. Any further selling will likely build upon itself. The best course of action is to obey your plan and do not deviate from your plan. We have some work to do tonight and will act accordingly.
Odds are now increasing we see some sort of correction. Many will likely lead to something more sinister, but we will take it as it comes. We are not in the prediction business. This is why CNBC, Bloomberg TV, and FBN exist. Let these television network’s pundits do the predicting. Focus on your stocks and react as needed. Do not react on emotion. Use facts.
Okay, there is more work to be done tonight. It is not looking good for the NASDAQ and NASDAQ 100. We would not be surprised to see these two indexes continue to lead us lower. Earnings season is around the corner and expectations are not high. Keep your eye on price action and do not try and be a hero in this shaky market.
