"Everyone has a plan 'till they get punched in the mouth" - Mike Tyson

August 24, 2015

What a day

I've only traded since the summer of 2009, but this open was unlike anything i've ever seen.  The lack of liquidity and quality stocks down 17-25% jumping dollars at a time.  Of course, as you try to place orders, the systems are so jammed up you don't get your confirmations for a few minutes (depending on your brokerage).  It was just an unforgettable open.

In this week's Rotation Report I mentioned this:

"We don't have a single clear, in-your-face reason for investors to sell (think about when we had Greece to blame).  If we can attribute a cause to the sell-off, it's easier psychologically for trapped longs to sell.  Instead, it seems we have confusion with a confluence of factors (china, oil, the fed) and confusion tends to lead to more hope and less action."

Well, the Dow dropping 1000 points is an adequate 'in-your-face' substitute.  Monday's low in the indexes has a chance to be durable.  We'll see how this week plays out, but that was a TON of forced selling this morning.  My view for the short term has pivoted, but the market is still badly broken in the intermediate term.

Trade 'em well!  

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