September Selling Perpetuates
Seasonality is in play as we continue to see selling persist. After such a long run up it is not a surprise to see stocks sell off. How low does it go is anyone’s best guess at this point but given where futures are at right now sellers will remain in control. Risk management is key and not trying to be a hero is a must. Too many try and force trades when they are not there to take. We see traders historical churn through their account taking trades when they do not have odds in their favor. Given the election is not too far off risk will likely be “off” until we see who wins on November 3rd. 2016 did not go as expected and it is not worth our time and effort to make a determination when it is just a guess. Our focus remains the same and this will not change. There is nothing new in the market only the players change. Stay the course.
September and October are notoriously bad months for the stock market. This is not new news. Most understand seasonality and while our Summer trading as of late has bucked the trend post Labor Day trading has remained true. If we had to guess it is very possible this market has a small rally only to set new lows before resuming the uptrend. There is a chance albeit smaller we continue to dive lower. It is anyone’s best guess right now and money is not made in the guessing. We would rather stay away from bad trades and take ones where odds are in our favor. The one thing we control is how we act and, in this instance, if you cannot control your need to trade in an unfavorable market should alert you to stop all together and reevaluate. Better markets will come. Patience is always rewarded.
While this market churns most traders’ accounts it is a great time to hunt for potential new names or even existing ones setting up in new bases. What good is having dry powder if you aren’t ready for when the market does turn. There are plenty of stocks out there it is whether you can successfully find and trade them properly. Most do not have the skills and emotional fortitude to successfully navigate a market like this. It is easy when stocks just go up, but a lot harder when there is a correction. Stick with Big Wave Trading and we’ll help navigate you through these waters.
Buckle up and stay disciplined.
