A number of times last week, we wrote in our emails:
“If you are long any of the above indices or ETFs, consider taking partial profit. Or just fasten your seatbelt for now. It may be bumpy soon.”
We hope you had the opportunity to lock in profit from your long positions in SPY, QQQ, IWM, TQQQ, TNA, SSO etc.
We also hope you took our advice and enjoyed a long weekend, instead of having to struggle with the market on Friday and today.
It has not been fun for traders who bought into the exuberance after FOMC announcement on Wednesday. Thursday March 21 was a major bull trap day, and chances are a number of those bulls got stopped out on Friday.
We can’t tell you precisely why the market started selling hard on Friday. But as you may have noticed, our trading system alerted us to this big dip earlier last week.
So even though it's not 100% perfect, we go by whatever our trading system says.
This morning, we sent out this alert:
“There are lots of bull traps and head fakes this morning.
We are not done with this big dip yet for $COMPQ, $SPX and $RUT.”
So the question now is will tomorrow be Turnaround Tuesday or Terrible Tuesday?
Furthermore, is this up trend still intact?
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