Scott Redler of T3Live
Nobody expected the extent of the volatility that we saw yesterday, but you didn’t have to!
I received a TON of thank you e-mails for getting most of my community out of stocks when the upper range broke at 1178-1182. Some even sold the strength over 1210 which was the target sell area. If you were skilled enough, you were even short and did very well with this 8% move off the highs.
My quick take on yesterday is that it was the Perfect Storm. We were in the midst of a correction, and we were only 5% off two year highs for the rally that took us 70%-80% off the lows. The Euro was getting trampled. Greece on T.V was mayhem. Everyone that had stops at the 65-day, 100-day, etc were taken out as the market sliced all levels and there were no buyers. Nobody can say for sure what triggered the initial selling, but for the most part it was a true move that was intensified by block boxes and the “fat finger trade”. Footsteps of 2008 were in everyone’s mind as well. People were scared including me! Yesterday put some traders out of Business and made some traders’ year.
Moving forward I would take it very slow. There is no need to be a hero. Trade small and watch key levels of the leading stocks. I do feel volatility will continue and this down move is not over, but there will be oversold trades along the way! No matter which way the market goes today, the volatility is here to stay for the foreseeable future.
