Stock Market Sell-Off (What Next?)

Yesterday we investors saw something we haven’t experienced in quite some time.  We saw a lot of ‘red’ flash across our screens.  To be clear, the SPY had a pull back to the tune of 1.2%.
 
And while seeing your positions (if you’re long) lose value isn’t a good feeling at all; pullbacks and consolidations are all healthy behaviors for the overall stock market.  Not to throw in a cliché here but like they say; “stocks don’t go up in a straight line” and neither does the broader market.  
 
Pullbacks, in essence, are a part of the course.  

​Pullbacks also represent opportunities to finally get into that trade that got away from you. 
 
How Will the Short Me Tina Community Position themselves? 

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A couple of things.  First, this pullback has presented a handful of new ‘long’ opportunities; so that’s a good thing. 
Secondly; I don’t believe today is the day to jump head in, into any long positions and three; it’s really just the time to be patient and see how the overall market reacts at these levels. 
 
We aren’t in a bear market; so I am not inclined to run out and put on a bunch of short positions either.

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Simplify This With Bullet Points for Me:

• If you have trades with substantial profits; you may want to lock some in.
• Don’t rush to open any new long positions.
• Don’t sell all your long shares (manage them).
• Don’t rush to open any new short positions.
• Make a list of stocks you wanted to acquire (they may be in buy territory).
• Make a list of stocks that are overvalued that you want to short (this may be more than just a pullback)
• Sit on the sidelines and do all the above (this is called observing the markets). 

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Look Below For a Recap of the SPY

​A few weeks ago; I signaled a warning on a potential pullback when the SPY hit the 240 levels.  I followed up in another blog and indicated 232-233 are good levels to pull back to and 226-228 represent the best levels for consolidation (IMO).  
 
At 233, we are sitting on support.  The best thing for us at this point; is for the SPY to consolidate on any of the above levels of support. 

​TBC

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