The bulls tried to hold support at the open but a nasty ISM number sealed the deal for the bears as they continue to push lower lows. We have been warning of a quick and swift pullback and there have been numerous clues over the past few weeks that were great signals to go SHORT the market. We mentioned a lot of investors DO NOT know how to make money when the market is sinking and we wish they did instead of listening to the talking heads.
The market pros and suit-and-ties are wondering where the bottom is and are telling everyone to stay out of the market. They don’t do chart work and they don’t follow the individual price patterns of stocks and why they sit on their hands when the action is bearish.
One commentator said today the S&P 500 Volatility Index ($VIX, 20.03, up 1.62) has lost respectability over the last 4 years as it surges past 20 and that he pays no attention to it. This echoed the comments of another blabbermouth from a month ago and we find it fascinating they say these types of things when the VIX has been a beautiful crystal ball in predicting market direction.
The Dow is down 209 points to 15,489 while the S&P 500 is lower by 27 points to 1,755. The Nasdaq is declining 73 points to 4,030 and the Russell 2000 is off 27 points to 1,103.
The new trades we have been building over the past few weeks are approaching triple-digit returns today and we have a Profit Alert on one of them that is up 94%.
Subscribers, check the Members Area for the updates as we will be closing HALF of the position to lock-in profits. We also have a Profit Alert for our Weekly Wrap that will be coming out shortly and we could have additional New Trades into the closing bell so stay locked-and-loaded.