From the Trading Desk

Week Kicks Off with Losses

Monday’s session was not how we would want to start the week. The NASDAQ notched another distribution day its third in four days. Volume on the NYSE fell, but most stocks finished in the red. This market has been stretched for some time and it does not come as a surprise we are seeing some selling pressure. Small Caps Ltd the market decline down almost .8%. The Dow was only down .23%. It has been awhile since we have seen the S&P 500 down .40%. The distribution count is piling up on the NASDAQ and it has come in a cluster. We will continue to execute our strategy with flawless precision. We will be prepared for whatever the market wants to throw at us. Be prepared.

We can only imagine the amount of Chicken Little’s coming out of the woodwork to call a market top. We fully acknowledge at any time we may have a market top. However, there are plenty of stocks continuing to look very good. A small pullback, even a 10% pullback would not be the end of the world and would certainly go a long way. Volatility is needed to produce outsized returns. We are certainly beating the market, but not as nearly as much as we saw in the 90s and 2000s. We can only trade the market that is in front of us and not the one we want. Take what you can get.

It’s pretty obvious the NASDAQ will need to avoid further distribution. As long as we hold steady there is no reason to panic. Ignore your emotions and what you think might happen. Stay with the process. Most will get out of hand and limit their ability to make gains. Do not fall into this trap.

Not how we wanted to start the week. However, there is plenty of time to get back today’s losses.

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