They say, “sell in May and go away!” But it’s only April! We have some time.
Today was a day the bears showed no mercy. We opened slightly lower and then it was only a matter of time before there were lower lows. CNBC headlines showed “6th of 8 Down sessions” before any of it really picked up. We really pay no attention to anything that is said by TV analysts, we solely utilize it for breaking news.
At one point in the day we were down -700 Dow points. We had told subscribers earlier last week that there is something in the price action that is telling us more selling is upon us, and boom we saw a sea of red.
When we were down -700, we had a hunch that the selling was overdone and looked to sell into the volatility (a bullish stance). The Dow closed -458 points, a nice intra-day bounce that we foresaw. What about tomorrow? Toss up really, we were only 20 SPX points from the February lows and bounced to now 50 points from the lows. Smart money says we are due for a bounce of some kind. We shall see to where and for how long. We always keep our insiders in the loop!