Stocks Fall Hard – You Should be Surprised $SPY $QQQ
Stocks fell hard yesterday. However to those reading the market action with distribution days this should not have come as a surprise. Currently we have now 6 Distribution days. Distribution days are where there is greater selling by institutional investors. I have been mentioning this over the last several posts. The retail investor has been getting overly bullish and at the same time the professionals have been selling.
The news did not seem to help either of the shooting down of the passenger jet over Ukraine and the Israeli ground invasion of Gaza really got the selling going and all the major averages finished near the bottom of their intraday ranges. You do not want to see heavy volume and closing on the intraday lows.
Another negative is the Russell which is the broad index as well as the leading stocks got hit with an index of leaders off by 2.00%. Think about it…if leaders can not lead nor is there rotation…Possibly we are heading off to a potential correction.
This is not a scare message. I will go long the strongest stocks in the strongest sectors when the market is healthy. When the market is not healthy as determined by my moving averages and distribution days….CASH is wonderful. No stress…No anxiety…
If you would like to improve your trading I offer one on one private mentoring by the hour.
You can email me at Andrew@TrendFollowingmentor.com