Market Update February 24th

Good Morning,

As I type here at 6:45 AM Eastern, the market is down sharply and we are looking at a large gap down open. We have been saying for a few weeks now that although we aren't seeing any single red flag for the market, we have been seeing numerous yellow flags and for this reason we have been staying very small in our position size in trades to both the long and the short side. This morning is a reminder (and hopefully not a painful one for members if you have stayed small in position size) why we have to manage risk through position size in times like this. The good news is that pullbacks like this eventually find support, and when they do we get some very nice buying opportunities. Today I will not be putting out a swing trade watch list as we need to let this open settle in and take a new look at some charts after this big gap down in the market. If things settle down quicker than I expect, I may put out a small watch list later this morning, but in all likelihood, today will be a day to stay patient and safe. We should hopefully see some opportunities to take profits in some of our short or defensive positions today.

3 views0 comments