The Markets Will Always Be There
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On Monday, the Nasdaq gapped sharply lower and after some
initial follow through to the downside, began to bounce. Unfortunately, by
mid-day the selling resumed. This action has it closing poorly and below
its open.
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The S&P was also hit hard.
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The VIX ($VIX.X)
was up sharply. It reached levels not seen since October of 1998. This action
confirms a panic sell off.
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So what do we do? Under a
normal situation, the extremely high VIX readings would suggest that we are near
a tradable bottom. And, any other time, I would be very excited about a
potential bounce play. However, we are in a news–driven
environment. Therefore, we should keep it light until the market stabilizes.
After that, we’ll re-evaluate the situation for opportunities. Remain patient
until then. The markets will always be there.
No setups tonight.
Best of luck with your trading
on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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