The month of February started where January left off, ‘down’. Today the DJIA loss more than 300 points while the SP500 down little bit over 40 points. Almost every talking heads and many market participants are anticipating more downside for the market. Not to dispute that possibility, but as one know from experience, whenever the majority is leaning on one side expect the opposite to occur. The market rarely does what is obvious. Since it is so obvious to many that this market is going down, expect the unexpected! Not saying one should go against the trend and go long. Instead, be defensive and move to the sideline if one does not have to trade. Wait until the market has found support level and formed a base before resuming to the long side. In this volatile market, only quick and day trade stand a chance to survive. Be cautious, trade defensively.
In this video, a review of the SP500 and a trade review on AOL.
Click here to view the video if you do not see a video player on your screen.
