Wednesday, October 10, 2012

Markets taking it on the chin

Markets went down without putting up a fight Wednesday.  Dow down 3 consecutive days.  Nasdaq and SPX are down 4 days in a row.  Indexes are approaching oversold levels.  However, there may be more downside before any sort of bounce develop.   IBD's market pulse has switched to 'Market in Correction' due to multiple high volume distribution days in the indexes for the last few weeks.   The damage has been done.  If you are still holding stocks, sell into any bounce and raise cash.  An experienced trader would hedge his or her position with options or play the markets on the short side patiently waiting for an opportune time.  Always stick to your trading plan, accept you will encounter losses.  The goal is to keep the loses to a minimum.  

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