Today the market was up almost 300 points within an hour of the open only to stall and spend the rest of the day in free fall.
The ideal scenario for us is the opposite..
Market opens 300 lower, stabilizes and then rebounds as no doubt a few of our very strong candidates would get knocked down to desirable levels.
One of the things we bang the table over is sailing with the wind at your back.
When institutional buying comes into a stock, it usually lasts for awhile and if anything, will only pause should the market experience turbulence.
The key distinction here is if that should occur, it's unlikely that these very same buyers would unload their recently acquired positions but rather head for higher ground and resume their buying after the "storm" subsides.
So, we prefer to wait out the storm with them and like the tenacious Tasmanian Devil, be chomping at the same trough when they return too.
It will be interesting to see if the key 17,500 level gets tested once again tomorrow and perhaps caves in.
If so, expect a rather violent move to the recent reaction low of 17,300(last weeks low on the chart).
Either way, we continue to proceed cautiously but have plans in mind should either scenario play out.
See everyone tomorrow...