That was one nasty market sell-off at the close today (comparatively speaking). Plenty of people were selling stocks, myself included. The biggest concern for me right now is that only 49% of stocks are trading above their 40-day moving average. That is with us only being about a week removed from having established all-time highs.
So I booked some gains in some trades and cut a loss (albeit a small one) in another. I still have some long positions remaining but I also added SPXU to the portfolio to basically keep things neutral until I can see how this market wants to open up tomorrow.
Trading My Watch List
I’m thinking that this watch-list will come in handy for tomorrow’s trading session. Check them all out tonight, find some that are starting to breakdown, and ones that you can manage the risk for and go after it. Me personally, I would welcome an extended market sell-off or pullback that pulls back around 5 to 10% overall. That kind of seems like a pipe dream considering we haven’t even seen a one day pullback of more than 1% since early October of last year. Nonetheless, be prepared, know your stops, and be ready to react according to the trading conditions that the market permits us with.
Here’s my watch list
