SELLING WAS DUE.

By: Todd Carbone

Selling was due. We had an over extended market that was due for a sell off. This sell off is a little concerning with the NASDAQ down 8% in the last two days, which meets the criteria for a correction. Corrections happen all the time during the marketplace. It allows the market to reset between buyers and sellers.

It also provides opportunity for people to get into the leading stocks at a cheaper price. One thing that is concerning is the volume on this sell was higher than the two previous sales this year, including the sell off during the start of the Coronavirus pandemic. The volume is currently high, making this selling real. We do not know how this next quarter will be, especially with the upcoming

presidential election. If you are looking to book profits, take a look at your current portfolio and analyze what positions you have, checking to see if your positions are still holding the 50 day and how the price action has been. If you are looking to add new positions, look at adding only 25 to 30% of your max position size.

Also, add into the leading stocks if they are holding on the 50 day, because if you do break the 50 day your loss will be much smaller.

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