The stock market has dropped swiftly and viciously the past few days. This has impacted most other markets -- including crude oil, precious metals, commodities, currencies and fixed income. A few quick thoughts from the blog's contributors who are traders and investors:
We are writing an article for Seeking Alpha on some of these topics. And in case you were wondering:
- Don't try and catch a falling knife. We had a blog post recently about this...
- Trade down to the level that lets you "sleep at night."
- Stick to your trading plan and/or system. Systematic approaches maintain discipline and reduce the impact of emotion and psychology.
- Our stock market indicators are currently "overall" bearish.
- Our short-term indicators have dictated our stock market positions because the other indicators (long-term and intermediate-term) were neutral.
- As our readers know, our intermediate-term and long-term indicators went to neutral on our last post on stock market indicators -- when the S&P was at 1216.
- Currently, however, our long-term model flipped to bearish (depending on market action, this may change; we will keep you posted). In addition the intermediate-term indicators are moderately bearish (but a look-ahead shows that the oversold indicator may flip to bullish in the near-term).
- The S&P closed Thursday at 1130.
