What a day!
This is extraordinary with prices down 7%, which we haven’t seen this type of selling pressure in a long time.
The market was “halted” for the first 15 minutes of the cash opening session after triggering the circuit breaker in the S&P 500 futures.
For the last two weeks, we have been approaching this market cautiously.
Because of the selling pressure, the market bid/ask spreads are very wide.
When the market is as wide as it is – you don’t want to add any new trades unless you’re forced to.
As we did last week, the best trade is to put our hands in our pockets.
I know you’re itching to make your next trade, but this is a tough market and we don’t have to put on any new risk right now.
We need to let this market sort itself out and let the rest of the selling pressure subside.
We will be monitoring each trading session this week and keep you updated
Action to Take: No Trade today