Yesterday we opened up strong and gave it back and today we just gapped down from the get go.
Global stocks fell Tuesday, with investors punishing commodities producers once again as crumbling raw materials prices and coming manufacturing data from China rekindled demand jitters.
The Dow dropped 179.72 points, or 1.1%, to end at 16330.47; it earlier hit a session low of 16221.73. The S&P fell 24.23 points, or 1.2%, to 1942.74. The Nasdaq fell 1.5% to 4756.72.
All sectors of the S&P 500 declined, with materials stocks posting the largest losses.
The biotech sector dropped again, so its down about 6% in just two days.
The big takeaway here is that we are not oversold yet. We have a long way to go for the technicals to ring a bell for me on that front.
In the meantime, if this is the start of a big second leg down, having short exposure OR cash will probably work.
I took a third off the UVXY today for a 12% profit. If the market does rollover further then we may be selling this one +30-40%. We’ll just have to see. I also added TDC as a new short today.
If you are following the P&L please check in nightly on a regular basis so you can stay updated.
It’s always an adventure. See you in the morning.