As expected, stock market took a huge beating today.
It dipped 1% in the early morning, touching a brief support by that 10 SMA line. It bounced up alittle, and then it dropped 2%.
I knew it the selling programs have been turned on. This time, they may drive the market further down again. The TEPPER TRADE might have come to an end. Expect more TEPPER TRADERS to cash out since they are already making loads of money. TEPPER TRADER are still in the money, and they might want to take profits, causing more selling.
NOVICE Traders who longed the market at the top are now panicking. See the market cycle chart again.
I think the market might correct further from here.
Some say 3%, some say 5%, some say 10%. This looks like a repeat of the may melt down. Hope no flash crash happens, otherwise, expect more regulation in the markets.
I am long PROSHARES ULTRASHORT SPXU, and some financials, but I hedged my financials using FAZ.
Still waiting for FAS to drop to $18.5 or $19 before I will look up financials charts again.
I am watching Bearish funds, including energy, technology for good trading plays.
ERY rose 8% today, I could only managed to capture 3% of this movement and closed out the trade.
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