Correction Time?

I, GK, Promise to never, ever, make fun of Sir Alan Greenspan, ever again!!! Boy, if I knew the gods would react this way, it would have been praises all around in last night's article. LOL

What a day. Every time you thought the selling was done, they put more and more pressure on the market. As I said yesterday, sell offs come out of left field, and the perfect combination of sell offs (China), economic reports, FED statements, computer errors combined for an unabated day of selling. To me it just seemed like pure panic with extreme readings on almost every front. But that doesn't mean we're done. At this point sell rules must be followed. We were forced out of 3 positions today, and are now looking to potentially exit the rest. Plenty of times during the day I thought of dumping (I wish I did), but I never imagined the extent of the selling.

So what to do now? If the market starts down, don't panic right away, give it a half hour to an hour to see if some kind of rally develops. Depending on the strength of the bounce you should definitely consider selling your laggards and losers. If the bounce continues, hold on to your strong stocks and see how well the rally goes over the next few days (assuming a bounce is coming). Look for potential shorts, but don’t initiate just yet, even if the selling continues, as any snap back rally will be hard and fast and will most likely run your shorts in. Enter the shorts after a weak multi day attempt at a rally starts to fail.

Good luck tomorrow and the rest of the week, it should be an interesting time.

PS
As of this writing China was trying to rally, it would be crazy, but not out of the ordinary with this market, to give us everything back. Wishful thinking, but easier on the heart with happy thoughts. LOL