Hello Master Trader Subscribers,
What a day in the markets! This was not the typical bearish down day.
The Nasdaq 100 ETF symbol QQQ was down almost 4.5 %, the Transportation ETF symbol IYT was down just over 4%, the S&P 500 ETF symbol SPY was down 3.17%, and the Dow Jones ETF symbol DIA was down 3.09%.
The down days in those broader market indices just before a reversal day where about this in size.
At the time writing of this update, the Dow Futures (YM) are down -281 points, at its 200-day moving average and about 6.5% from its recent high. The S&P 500 (ES) Futures are down -27.50 points, slightly below its 200-day moving average and about 6.5% from its recent higher. The Nasdaq 100 Futures are down -90 points, below its 200-day moving average and already almost 10% from its recent high.
A tradable low should be close, but that would only be considered short-term. Falls like this are not over a after short-term reversal.
Dan and I had a discussion on the recent fall in only 5-days and thoughts of it in the Green Room near the end of the day.
Big opportunities are ahead. We hope that you heeded the advice of trading small prior this drop. We did not expect such a large drop so fast since the market internals or price patterns suggested it. This is out of the historical norm where we have always had a “heads-up.”
Here is the video of the discussion and answering comments posted by the Greenies.
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Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
Dan Gibby
Chief Options Strategist
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