Topics covered:
1) 0:00 Announcements
2) 0:35 Market Commentary and Index Review (Nasdaq Composite, S&P 500, and Russell 2000)
3) 13:20 Conclusion/Summary
Market Summary:
I discussed in recent videos how I would like to see three things before we were likely to see a new, sustained uptrend in growth stocks. Unfortunately, the opposite of those three things is happening. 1) I wanted to see a follow through day on the Nasdaq Composite, but we had distribution days on Tuesday and Wednesday. In other words, I wanted to see the big institutions coming back into the market with conviction, but instead, they are continuing to show signs of selling. 2) The Nasdaq Composite to get back above its 50-day moving average. Instead, it continues to drift below that level and the Russell 2000 is also joining the Nasdaq below its 50-day. 3) For more setups to show up. I presented a few in last weekend’s video and they all failed. In addition, many stocks on my watch list continue to act poorly.
Conclusion: STAY DEFENSIVE!!! I’ve been encouraging patience in the past few videos and I continue to stress patience and defense. If you are a longer-term investor, you have to accept the volatility that comes with longer-term holding periods. Either way, you still have to have a loss cutting policy, even if you are longer-term. If you have a shorter-term timeframe, get off margin and minimize any new buys. If I can offer any words of encouragement, there will be a strong, new uptrend when this correction is over, but you have to be defensive until then. When conditions improve, I will do my best to identify them and pass along the strongest stocks I can find. In the meantime, I will not force ideas just for the sake of giving you something to trade. If you have any questions, you can ask them during the next webinar, which will be tonight, March 24th at 7PM EST. Thank you.
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