OUCH!!!!!!
Today alone the SPX blew through two levels of support and rapidly fell close to the third level of support. For those who have been hedging as the market and volatility have risen and saw losses mounting along the way, you're sure glad today I'll bet.
It's discouraging I'm sure to see the 2760 support break and then on the same day see the 2690 support level break. Here's some food for thought.A three to five percent pullback is fairly common. Five to 10 percent pullbacks are not, and when they do bargain shoppers seem to perk up. Obviously nobody knows how much lower the market will drop even after today, but since the SPX has broken my lower support at 2690 I have a target at 2620. It is almost there. This target at 2620 is nearly nine percent from our market top. The good news is that the market is very close to a full scale market correction.
Again, although nobody knows how far down or how long it will take, I believe that prices have fallen enough to take on longer-term investments. Each time the SPX falls 10 percent, personally, I think it's a good entry.
Days like today remind us how important money management is. For trades that are now at or near maximum loss, remember, time is your friend at this juncture. Since the market has not reached my new, lower target, I won't be surprised to see more decline tomorrow. However, I will also not be surprised to see bargain shoppers kick in very soon.
Keep your chins high and let's hope (at least you bulls out there) that the market makes a speedy recovery!
Craig
The place to follow Craig Michaelson. Click Tabs for individual topics, or look below for general postings
5 comments:
Thanks Craig. Good to hear what you have to say in times like these, please keep it up.
It's reassuring to read your post! We've been waiting for a pullback and to do VIX spike trades. But now that it is here it is so hard to pull the trigger!
I went bargain shopping this morning and picked up a couple of great long-term stocks. Thank you Craig for your insight, it is very reassuring to read your clear insight.
Thank you for your comments
This pullback means opportunity!
There a ton of stocks out there...just look the best of them in the SPX sectors
The SPX traded $5 above my support level today, so let's hope that it's "breaking resistance."
Post a Comment