Market Downtrend in Stocks $SPY $QQQ
As always you need to have a trading plan. You do not want to say ” It is just a correction” or ” The Market can comeback”. We just never know the future. A correction can ramp up to a full bear market which can destroy both financially and emotionally. As stated in my earlier posts I have exited all long positions in early July. I am long the VIXY which is the Vix as well as short the European Stock indexes. However I am locked in with any opinion and believe the market could heal itself or get a boast of Central Bank Liquidity.
Yesterday was a particularly bad for stocks. The S&P 500 closed under it key 100-day moving average line at 1914 today, hitting a new multi-week low in the process. The NASDAQ’s Volatility Index (VXN) made its highest close in weeks yesterday. Breadth was poor on the Nasdaq as declining stocks outnumbered advancers by nearly 2-to-1. On the NYSE, decliners only had a slight edge over advancers. All the major averages made new lows for the pull back and closed near their lows of the day. The correction seems to be getting deeper and as of this writing the futures were taking another hit, possibly on rumors that the U. S. would be starting air strikes in Iraq.
Contrary to the pundits it is possible to call the market’s major tops and bottoms. I can teach you how to improve your trading. I offer one on one private mentoring. Just email me Andrew@Trendfollowingmentor.com