Good morning
Equities have been hit hard this week and we have done some significant technical damage. Volatility is high as the fear index indicates that there is some genuine concern out there. It is extremely important not to panic in times like these.
Thinking as an investor for your long term hold or swing trades you need to go through your portfolio and determine if anything has fundamentally changed to the stocks that you are holding. Research for yourself and decide if there are any company specific reasons that the stock is down or if there is something drastically different today than two weeks ago for the sector it trades in. If there is nothing you can find is it possible that the stocks in your portfolio are just being dragged down with the markets and the algorithmic trading/ momentum of weakness?
The members at Alpha Wolf trading know that I love times like these. It gives me a chance to reset and find opportunities to add to the stocks that I like in my portfolio and potentially make new additions of stocks I have wanted to own but wanted them on a pullback to prices where there may be some support and offer some value.
Is this the beginning of a bear market? Nobody knows! Could there be a case made that points in that direction? Absolutely and that case has been being made for the last 10 years. Earnings/guidance are what matter and we are about to start earnings season.
Thinking as a day trader when things are as volatile as they are this week you need to be nimble. The market swings can be dramatic in both directions. Reduce your position sizing if you are going to play in this volatility.
