http://schrts.co/UwhPbmTA

 

 

http://schrts.co/xzrNkEzD

Looking for a reason for the market to tank?  Here’s one: Investors cashed in their chips because they  expected “the Labor Day Shift.”  So to get ahead of it they punted early.

There are probably several hundred other reasons — all of them equally invalid and none of them definitive, but all amusing.  and worthy of discussion because of, well, 800 points.

As the market floated up pundits couldn’t find a plausible reason.  Now they have no plausible reason for a sell off — except it’s time for a correction.  Surprise! This is one of the foundation stones for technical analysis.

The market sold off — why?  It broke a trend line…it broke a 20 day moving average line… and so on.

Rather than indulge in hopeless search for a reason concentrate on what comes next– we said yesterday that scaling out or lightening up was in order–because of a long uncorrected trend, stretched valuations, an air of unreality marked by values floating free…

More than likely it is time for readers to play defense and wait. Volatility will continue strong as will uncertainty.  After this period  a new bull market will emerge.

 

Next PostRead more articles

Leave a Reply