I know I was about two months early on this, but I think today was finally the day I have been looking for. Start taking profits on your stocks if you have them. There is just too much lining up here that makes me nervous that the "big correction" is finally here. Today the NASDAQ fell through trendline resistance, but more importantly closed under this trendline resistance from the March lows. 1050 was a key resistance number on the S&P 500 and it was breached today with an accompanying close under 1050. And maybe most importantly, the SOX (which is 88% correlated to the NASDAQ since 2006) closed under its previous low from a few weeks ago. If you follow technical analysis/Dow Theory, this is a layup...time to sell. Since the techs are the ones that led us up, it figures that they will be the ones to lead us down.
Now, I could be wrong. I like to think I was just early to the show in August but we are way past due for a 10% or even 15% selloff in this market. Art Cashin has been right all along. And I put my money where my mouth is today...I moved about 40% of my IRA into cash and my QQQQ puts are a few pennies away from breakeven. Sometimes the stars just line up.....
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